UNIFORM  SYSTEM  OF  ACCOUNTS  FOR 
WATER  (“COMPANIES,  PRESCRIBED  BY  THE 
PUBLIC  UTILITIES  COMMISSION  OF  THE 
STATE  OF  CONNECTICUT 


First  Issue,  Effective 
January  1,  1922 


Prepared  Under  the  Direc- 
tion of  The  Commission  by 
"dward  Field,  Auditor  and 
istician. 


V-iV. , 


UNIFORM  SYSTEM  OF  ACCOUNTS  FOR 
WATER  COMPANIES,  PRESCRIBED  BY  THE 
PUBLIC  UTILITIES  COMMISSION  OF  THE 
STATE  OF  CONNECTICUT-  - 


First  Issue,  Effective 
January  1,  1922 


Prepared  Under  the  Direc- 
tion of  The  Commission  by 
Edward  Field,  Auditor  and 
Statiscian. 


3 6' 1,6 
C 76  u. 

Docket  No.  3727 

State  of  Connecticut, 

Public  Utilities  Commission, 
Hartford. 

In  accordance  with  the  provisions  of  Chapter  199  of  the 
Public  Acts  of  1921,  this  Commission  hereby  prescribes 
the  method  for  keeping  the  accounts  pertaining  to  water 
companies,  which  method  shall  be  known  and  designated 
as,  “ Uniform  System  of  Accounts  for  Water  Companies, 
Prescribed  by  The  Public  Utilities  Commission  of  The 
State  of  Connecticut,”  a copy  whereof  is  hereto  annexed. 

It  is  hereby  ordered  that  on  and  after  January  1,  1922, 
every  water  company  as  defined  herein  will  be  required 
to  carry  on  its  books  the  accounts  herein  prescribed  or 
defined,  in  so  far  as  the  same  are  pertinent  to  the  facts 
and  circumstances  of  said  utility,  and  to  keep  such  accounts 
in  conformity  with  the  definition  and  instructions  contained 
herein. 

For  purposes  of  efficiency  of  administration  and  opera- 
tion, any  utility  may,  unless  or  until  otherwise  ordered, 
keep  upon  its  books  any  temporary  or  experimental  accounts, 
and  any  accounts  covering  particular  divisions  of  its  opera- 
tions, provided  that  such  temporary,  experimental,  or  di- 
visional account  shall  not  impair  the  integrity  of  any  ac- 
count herein  prescribed. 

It  is  further  ordered : That  all  accounts  herein  prescribed 

shall  be  kept  by*  the  double-entry  method  of  bookkeeping, 
but  this  requirement  is  not  intended  to  apply  to  purely 
statistical  accounts. 

That  the  term  “ water  company  ” as  referred  to  herein 
shall  include  every  corporation,  company,  association, 
joint  stock  association,  partnership,  or  person  or  lessee 
thereof  owning,  maintaining,  operating,  managing,  or  con- 
trolling any  pond,  lake,  reservoir  or  distributing  plant  em- 
ployed for  the  purpose  of  supplying  water  for  general 
domestic  use  in  any  town,  city  or  borough  or  portion  there- 
of within  this  state,  and  every  municipality  or  department 
thereof  owning,  leasing,  operating  or  managing  a plant  for 
the  supplying  or  furnishing  of  water  for  said  purpose  in 
said  state. 

Dated  at  Hartford  this  first  day  of  December,  A.  D.  1921. 

Richard  T.  Higgins, 

Charles  C.  Elwell, 

Joseph  W.  Alsop, 

Public  Utilities  Commission. 

Hartford  County,  ss. 

Hartford,  Conn.,  December  1,  1921. 

I hereby  certify  that  the  foregoing  is  a true  copy  of  the 
original  order  as  on  file  and  record  in  this  office. 

Attest:  Henry  F.  Billings,  Secretary. 


GENERAL  INSTRUCTIONS 


By  the  provisions  of  the  general  laws  it  is  provided  that 
the  Public  Utilities  Commission  shall  annually,  on  or  be- 
fore the  31st  day  of  December,  furnish  to  every  water  com- 
pany, as  hereinbefore  defined,  blanks  for  annual  reports 
in  such  form  as  such  commission  may  prescribe. 

Included  herein  will  be  found  the  several  schedules  which 
will  be  contained  in  the  form  of  report  which  will  be  pre- 
scribed by  the  commission  until  further  notice. 


TIME  FOR  FILING  REPORTS 

Each  such  company  shall  return  one  of  such  reports  to 
the  commission  on  or  before  the  31st  day  of  March  next 
following,  with  all  questions  therein  fully  answered. 


PERIOD  COVERED  BY  REPORTS 

All  reports  shall  be  for  the  year  ending  the  31st  day  of 
December  and  shall  be  signed  and  sworn  to  by  the  presi- 
dent, or  vice-president,  and  treasurer,  or  by  a majority  of 
the  trustees  or  receivers  making  the  same,  in  the  case  of 
privately  owned  companies,  and  in  the  case  of  municipalities 
or  departments  thereof  by  the  general  superintendent  of  the 
plant  and  by  such  other  person  or  persons  as  may  be  desig- 
nated by  such  municipality  or  department. 

REPORTS  TO  BE  IN  ACCORDANCE  WITH  1 
FORM  PRESCRIBED 

Every  water  company  as  hereinbefore  defined  shall  make 
such  annual  reports  strictly  according  to  the  form  provided, 
and  if  it  shall  find  it  impracticable  to  answer  all  the  items 
in  detail  as  required,  it  shall  state  in  its  report  the  reasons 
why  such  details  cannot  be  given,  but  no  such  water  com- 
pany shall  be  excused  from  giving  such  details  for  the 
reason  that  it  does  not  keep  its  accounts  in  such  manner 
as  will  enable  it  to  do  so. 

FIXED  CAPITAL  TO  BE  ENTERED  AND 
RETAINED  ON  BOOKS  AT  COST 

All  charges  to  fixed  capital  accounts  shall  be  at  the  actual 
cost  of  the  property  acquired,  at  the  time  of  its  acquisition. 
A bona  fide  contract  or  agreement  of  purchase  and  sale  be- 
tween entirely  separate  parties  shall  be  prima  facie  evidence 
of  actual  cost.  The  term  “ cost  ” includes  not  only  the  cost 
of  labor,  material,  and  supplies  directly  employed  or  con- 
sumed in  the  construction  and  installation  of  fixed  capital, 
but  also  the  cost  of  preliminary  plans  and  surveys  and 


such  portion  of  the  expenses  for  engineering  and  plant 
supervision  and  of  general  expenses  as  may  be  chargeable 
to  the  fixed  capital  accounts  under  an  equitable  plan  for 
apportionment  of  such  expenses.  When  the  consideration 
actually  given  for  anything  with  respect  to  which  a charge 
is  made  to  any  fixed  capital  or  other  property  account  is 
other  than  money,  the  actual  consideration  shall  be  de- 
scribed in  the  entry  with  sufficient  fullness  and  particularity 
to  identify  it,  and  the  amount  charged  shall  be  the  actual 
money  value  of  such  consideration  at  the  time  of  the 
transaction. 

APPRAISED  VALUES  NOT  TO  BE  CARRIED  TO 
BOOKS  OF  ACCOUNT 

No  adjustment  of  any  plant  accounts  shall  be  made  on 
the  basis  of  any  appraised  value.  Should  the  commission 
at  any  time  find  a certain  value  of  the  property  for  rate 
making  or  other  purposes,  such  finding  does  not  warrant 
changing  the  books  of  account  unless  specifically  so  directed. 
The  books  are  intended  to  show  at  all  times  the  original 
cost  to  the  company  of  its  existing  property  less  such 
credits  as  may  have  been  made  on  account  of  property 
abandoned,  sold,  reconstructed  or  conveyed. 

NUMBERS  NOT  A PART  OF  TITLE  OF 
ACCOUNT 

The  numbers  preceding  the  several  accounts  provided 
in  this  system  of  accounts  are  solely  for  convenience  of 
reference,  and  should  not  be  regarded  as  a part  of  the 
title  of  such  account. 

ACCOUNTS  AS  FEATURES  IN  RATE  MAKING 

In  prescribing  this  system  of  accounts  the  commission 
will  not  feel  bound  to  approve  the  several  items  set  out  in 
any  account,  either  as  to  amount  or  character,  for  rate  mak- 
ing purposes.  The  classification  of  accounts  is  designed  to 
set  out  the  facts  in  connection  with  the  utilities  fixed  capital 
income,  expenses,  etc.,  and  the  commission  when  engaged 
in  making  or  approving  rates  will  determine  from  the 
facts  in  each  case  just  what  consideration  shall  be  given  to 
the  various  items  in  the  several  accounts. 

FIRST  ENTRIES  MUST  ENABLE  IDENTIFICATION 

The  first  entry  relating  to  anything  to  which  a charge 
or  a credit  is  made  to  any  fixed  capital  or  investment  ac- 
count shall  describe  the  property  in  respect  of  which  the 
entry  is  made  in  such  fullness  and  particularity  as  to  enable 
its  identification. 


The  classification  of  accounts  herein  prescribed  has  been 
prepared  to  cover  as  nearly  as  possible  the  accounting  con- 
ditions required  by  water  companies  as  well  as  the  purposes 
of  the  commission.  It  is  probable  that  questions  will  arise 
in  connection  with  the  application  of  the  system  that  will 
require  further  explanation  and  elucidation. 

In  any  such  case  the  accounting  officers  of  the  several 
water  companies  under  the  jurisdiction  of  the  commission 
are  requested  to  communicate  with  the  commission  for  such 
further  information  and  instruction  that  may  be  required 
or  necessary  in  connection  with  accounting  details. 


(House  Bill  No.  948) 

Chapter  199 

AN  ACT  CONCERNING  ANNUAL  REPORTS  BY 
MUNICIPALITIES  OWNING  PUBLIC 
UTILITIES. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  in 
General  Assembly  convened : 

The  public  utilities  commission  shall,  annually,  on  or 
before  the  thirty-first  day  of  December,  furnish  to  every 
municipality  or  department  thereof  owning,  leasing,  operat- 
ing or  managing  a plant  for  the  supplying  or  furnishing 
of  any  public  utility,  blanks  for  annual  reports  in  such 
form  as  said  commission  may  prescribe.  Every  such  munici- 
pality or  department  shall  return  one  of  such  reports  to 
the  commission  on  or  before  the  thirty-first  day  of  March 
next  following,  with  all  questions  thereon  fully  answered. 
All  reports  shall  be  for  the  year  ending  the  thirty-first  day 
of  December  and  shall  be  sworn  to  by  the  general  superin- 
tendent of  the  plant  or  utility  for  which  the  report  is  re- 
quired and  by  such  other  person  or  persons  as  may  be 
designated  by  such  municipality  or  department.  Every  such 
municipality  or  department  shall  make  such  annual  reports 
strictly  according  to  the  form  provided  and  if  it  shall  find 
it  impracticable  to  answer  all  the  items  In  detail  as  re- 
quired, the  report  shall  state  the  reasons  why  such  details 
cannot  be  given ; but  no  such  municipality  or  department 
shall  be  excused  from  giving  such  details  for  the  reason  that 
it  does  not  keep  its  accounts  in  such  manner  as  will  enable 
it  to  do  so,  and  said  commission  may  prescribe  the  method 
for  keeping  the  accounts  pertaining  to  such  utility  and  all 
other  utilities  reporting  to  said  commission.  When  any 
such  report  seems  to  the  commission  defective  or  erroneous 
it  may  notify  the  municipality  making  the  same,  and  re- 
quire the  amendment  of  such  report  within  fifteen  days 
from  the  time  of  giving  such  notice;  and  the  commission 
may  examine  the  officers,  agents  and  employees,  books, 
records,  accounts,  vouchers,  plant  and  equipment  of  such 
municipality  or  department  pertaining  to  such  utility  and 
may  correct  such  items  in  such  report  as,  upon  such  ex- 
amination, the  commission  may  find  ought  to  be  corrected. 
No  report  shall  be  required  hereunder  for  the  year  ending 
December  31,  1921. 

Approved,  May  18,  1921. 


Digitized  by  the  Internet  Archive 
in  2016 


https://archive.org/details/uniformsystemofaOOfiel 


5 


STANDARD  FORM  OF  BALANCE  SHEET 
ASSET  SIDE 

Page 

FIXED  CAPITAL 

101.  FIXED  CAPITAL  INSTALLED  PRIOR  TO  JAN- 

UARY i,  1922  22 

102.  FIXED  CAPITAL  INSTALLED  SINCE  DECEMBER 

31,  1921  22 

103.  COST  OF  FIXED  CAPITAL  PURCHASED  22 

104.  CONSTRUCTION  WORK  IN  PROGRESS  22 

105.  FIXED  CAPITAL  IN  OTHER  DEPARTMENTS  ....  23 

CURRENT  ASSETS 

no.  CASH  6 

hi.  NOTES  RECEIVABLE  7 

1 12.  ACCOUNTS  RECEIVABLE  7 

1 13.  INTEREST  AND  DIVIDENDS  RECEIVABLE  7 

1 14.  MATERIALS  AND  SUPPLIES  7 

115.  PREPAID  ACCOUNTS  8 

116.  MISCELLANEOUS  CURRENT  ASSETS  8 

MISCELLANEOUS  ASSETS 

120.  INVESTMENTS  IN  AFFILIATED  COMPANIES  ...  9 

121.  MISCELLANEOUS  INVESTMENTS  9 

122.  SINKING  FUNDS  9 

123.  MISCELLANEOUS  SPECIAL  FUNDS  10 

124.  SPECIAL  DEPOSITS  10 

SUSPENSE  ACCOUNTS 

130.  UNAMORTIZED  DEBT  DISCOUNT  AND  EX- 

PENSE   10 

131.  PROPERTY  ABANDONED  10 

132.  JOBBING  ACCOUNTS  n 

133.  CLEARING  OR  APPORTIONMENT  ACCOUNTS  ..  n 

134.  MISCELLANEOUS  SUSPENSE  n 

ADJUSTMENT  ACCOUNTS 

140.  DISCOUNT  ON  CAPITAL  STOCK  12 

141.  REACQUIRED  SECURITIES  12 

142.  TREASURY  SECURITIES  12 

143.  PROFIT  AND  LOSS  DEFICIT  12 

LIABILITY  SIDE 

150.  CAPITAL  STOCK  12 

151.  PREMIUM  ON  CAPITAL  STOCK  13 

152.  LONG  TERM  DEBT  14 

153.  RECEIVERS’  CERTIFICATES  14 


6 


CURRENT  LIABILITIES 

Page 


160.  NOTES  PAYABLE  14 

161.  ACCOUNTS  PAYABLE  14 

162.  CONSUMERS’  DEPOSITS  15 

163.  MATURED  INTEREST  UNPAID  15 

164.  DIVIDENDS  DECLARED  15 

165.  MATURED  LONG  TERM  DEBT  UNPAID  15 

166.  MISCELLANEOUS  CURRENT  LIABILITIES  15 

ACCRUED  LIABILITIES 

170.  TAXES  ACCRUED  16 

171.  INTEREST  ACCRUED  16 

172.  MISCELLANEOUS  ACCRUED  LIABILITIES  17 

173.  ADVANCES  FROM  AFFILIATED  COMPANIES  ..  17 

RESERVES 

180.  DEPRECIATION  RESERVE  17 

181.  CASUALTIES  AND  INSURANCE  RESERVE  18 

182.  UNAMORTIZED  PREMIUM  ON  DEBT  18 

183.  SINKING  FUND  RESERVE  18 

184.  CONTRIBUTIONS  FOR  EXTENSIONS  19 

185.  CONTINGENCY  RESERVE  19 

186.  MISCELLANEOUS  RESERVES  19 

187.  MISCELLANEOUS  UNADJUSTED  CREDITS  20 

188.  PROFIT  AND  LOSS  SURPLUS  20 


TEXT  PERTAINING  TO  BALANCE  SHEET  ACCOUNTS 

ASSETS 

101-105.  FIXED  CAPITAL. 

This  account  shall  include  the  cost  of  the  property 
having  an  expectation  of  life  in  service  of  more  than 
one  year,  which  is  devoted  to  the  operations  conducted 
by  the  accounting  company,  less  deductions  for  prop- 
erty abandoned,  sold  or  otherwise  retired. 

For  details  see  “ Fixed  Capital  Accounts.” 

no.  CASH. 

This  account  shall  include  all  money  coming  into 
the  possession  of  the  accounting  company  in  which 
it  has  a beneficial  interest.  This  covers  coin  of  the 
United  States,  United  States  Treasury  notes,  gold  and 
silver  certificates  and  greenbacks,  and  bank  bills  pay- 
able to  bearer  on  demand ; also  all  bank  credits,  checks 
and  drafts  receivable  subject  to  satisfaction  or  transfer 
upon  demand  (whether  payable  to  bearer  or  to  order.) 


/ 


in.  NOTES  RECEIVABLE. 

This  account  shall  include  the  ledger  value  of  all 
notes  and  bills  receivable  which  are  the  property  of 
the  accounting  company  and  upon  which  solvent  con- 
cerns or  individuals  are  liable.  This  covers  demand 
notes,  drafts,  etc.,  issued  by  others  than  banks,  and 
time  notes,  drafts,  etc.,  by  whomever  issued.  This 
account  does  not  include  investments. 

1 12.  ACCOUNTS  RECEIVABLE. 

This  account  shall  include  all  amounts  (other  than 
deposits  in  banks)  owing  to  the  accounting  company 
upon  open  book  accounts  with  solvent  concerns  and 
individuals ; also  the  ledger  value  of  all  accounts  and 
claims  upon  which  responsibility  is  acknowledged  by 
solvent  concerns  and  individuals  or  which  are  suffici- 
ently secured  to  be  considered  good  and  of  all  judg- 
ments against  such  concerns  where  the  judgment  is 
not  appealable  or  suspended  through  appeal.  This 
account  does  not  include  negotiables. 

1 13.  INTEREST  AND  DIVIDENDS  RECEIVABLE. 

This  account  shall  include  the  amount  of  interest 
accrued  to  the  date  of  the  balance  sheet  on  funded 
and  unfunded  securities,  loans,  open  accounts,  mort- 
gages and  deposits  held  by  or  for  the  accounting  com- 
pany ; dividends  declared  on  stocks  similarly  held, 
and  dividends  accrued  on  stocks  when  contracts  re- 
quire that  the  dividend  be  paid  at  stated  times. 

Note. — No  amount  representing  interest  or  dividends 
receivable  shall  be  included  in  this  account  unless  its  pay- 
ment is  reasonably  assured  by  past  experience  and  antici- 
pated provision,  or  otherwise.  But  the  definition  of  this 
account  should  not  be  construed  to  prevent  the  carrying 
of  interest  and  dividends  receivable  in  a suspense  account 
until  collection  has  actually  been  made,  even  though  the 
debtor  be  considered  to  be  solvent. 

14.  MATERIALS  AND  SUPPLIES. 

This  account  shall  include  the  balances  represent- 
ing the  cost  (including  transportation,  insurance,  and 
inspection  charges,  customs  duties,  etc.)  of  all  ma- 
terials and  supplies  not  charged  out  in  the  account- 
ing company’s  accounts,  regardless  of  whether  the 
same  are  intended  to  be  consumed  in  construction  or 
in  operation,  or  later  to  be  sold. 

When  any  materials  or  supplies  the  cost  of  which 
has  been  charged  to  this  account  are  issued  for  use, 
the  amount  at  which  they  stand  charged  herein  should 
be  credited  to  this  account  and  charged  to  the  proper 
construction,  operating  expense,  or  other  account. 


8 


Inventories  of  materials  and  supplies  shall  be  taken 
at  least  annually  and  any  shortage  or  overage  dis- 
closed by  such  inventories  shall  be  credited  or  debited 
to  this  account  and  debited  or  credited  to  operating 
expense  account,  “ Miscellaneous  General  Expenses,” 
No.  621,  in  case  they  cannot  be  assigned  to  a specific 
account. 


1 15.  PREPAID  ACCOUNTS. 

This  account  shall  include  the  debit  balances  de- 
scribed under  the  following  sub-heads : 

a.  Prepaid  Taxes.  The  excess  of  taxes  paid  over 
the  amount  properly  chargeable  to  current  income  or 
other  similar  account,  as  shown  by  a debit  balance  in 
the  tax  liability  account  ( See  note  under  account, 
“Taxes  Accrued”  No.  170). 

b.  Prepaid  Rents.  The  amount  of  rents  paid  in 
advance  of  the  enjoyment  of  the  term.  As  the  term 
is  consumed,  this  account  shall  be  credited  at  regular 
accounting  intervals  and  the  appropriate  rent  account 
debited  with  the  amount  applicable  to  the  period. 

c.  Prepaid  Insurance.  The  amount  of  premium 
on  insurance  policies  paid  in  advance  of  their  accrual. 
As  such  premiums  accrue  they  should  be  credited  at 
regular  accounting  intervals  to  this  account  and 
charged  to  the  appropriate  operating  expense  or  other 
account. 

d.  Miscellaneous  Prepayments.  Prepayments 
made  for  any  purpose  other  than  as  provided  for  in 
the  preceding  heads. 

Note. — By  the  accrual  of  insurance,  rents,  etc.,  it  is 
meant  their  accumulation  when  considered  as  spread  uni- 
formly over  the  period  to  which  they  apply.  Thus  if  the  rent 
fixed  by  contract  of  lease  for  a certain  property  is  $600. 
for  a calendar  year,  this  accrues  at  the  rate  of  $50.  each 
month  (unless  it  is  desired  to  base  the  accruals  on  days, 
when  the  varying  lengths  of  the  months  would  require  to 
be  considered),  regardless  of  the  actual  times  when  the 
rent  matures;  $50  should  thus  (if  the  rent  has  been  pre- 
paid) be  credited  each  month  to  the  sub-account  “Prepaid 
Rents  ” and  concurrently  charged  to  the  appropriate 
account  in  the  “ Income  ” account.  Similarly  in  the  case 
of  other  prepayments. 


1 16.  MISCELLANEOUS  CURRENT  ASSETS. 

This  account  shall  include  the  cost  of  all  current 
assets  which  are  not  includible  under  any  of  the  fore- 
going accounts. 


9 

120.  INVESTMENTS  IN  AFFILIATED  COM- 
PANIES. 

This  account  shall  include  the  ledger  value  of  the 
accounting  company’s  investment  in  securities  or  non- 
negotiable  notes  issued  or  assumed  by  affiliated  com- 
panies ; also  of  its  investment  advances  to  such  com- 
panies. Two  companies  are  affiliated  if  either  one 
controls  the  policy  of  the  other  or  if  both  are  subject 
to  the  same  control.  By  “ investment  advances  ” are 
meant  debit  balances  in  open  accounts  with  affiliated 
companies  not  subject  to  current  settlement  and  in- 
terest accrued  on  such  open  accounts  when  such  in- 
terest is  not  subject  to  current  settlement.  This  ac- 
count shall  be  subdivided  as  follows : 

a.  Stocks. 

b.  Bonds. 

c.  Notes. 

d.  Advances. 

Note  A.  — Accounts  with  affiliated  companies  which 
are  subject  to  current  settlement  such  as  charges  for  ma- 
terials and  supplies  currently  furnished,  charges  for  re- 
pairs to  equipment,  etc.,  shall  be  classed  as  current  assets 
or  current  liabilities  as  may  be  appropriate. 

Note  B.  — Securities  borrowed  by  the  accounting  com- 
pany and  pledged  should  not  be  included  in  this  account. 

121 . MISCELLANEOUS  INVESTMENTS. 

This  account  shall  include  the  balances  in  accounts 
representing  miscellaneous  investments  such  as  those 
in  securities  of  other  non-affiliated  corporations,  in- 
tangible property  of  a permanent  nature  not  coming 
within  the  definition  of  fixed  capital,  as  for  example, 
real  estate  leased  to  others  or  held  for  a rise  in  value, 
etc.,  provided  such  investments  are  not  included  in 
any  special  fund  account. 

The  accounting  company’s  records  should  be  kept 
in  such  manner  as  to  permit  the  ready  analysis  of 
this  account,  to  show  separately  in  the  company’s  an- 
nual reports  full  particulars  concerning  its  investments 
of  any  given  class,  including  the  ledger  value  of  those 
which  are  held  subject  to  a mortgage,  pledge,  or  other 
lien. 

122.  SINKING  FUNDS. 

This  account  shall  include  the  amount  of  cash,  the 
ledger  value  of  securities  of  other  companies,  and 
other  assets  which  are  held  by  trustees  of  sinking 
funds  for  the  purpose  of  redeeming  outstanding  ob- 
ligations, including  such  assets  so  held  by  the  ac- 
counting company  when  they  are  segregated  in  a dis- 


IO 


tinct  fund;  also  amounts  deposited  with  such  trus- 
tees on  account  of  mortgaged  property  sold  when  the 
proceeds  of  such  sale  are  to  be  held  for  the  redeem- 
ing of  securities ; and  the  cost  of  live  securities  issued 
or  assumed  by  the  accounting  company  and  held  in 
such  funds.  A separate  account  shall  be  kept  for 
each  fund  and  the  title  of  each  such  fund  account 
should  designate  the  obligation  in  support  of  which 
the  fund  is  created. 

Note.  — Should  the  constituents  of  a sinking  fund 
change  substantially  in  value,  and  such  change  seem  likely 
to  be  permanent,  it  may  be  reflected  by  suitable  entries  in 
this  account  and  in  the  corresponding  reserve  account  or 
in  “ Profit  and  Loss  ” as  may  be  appropriate. 

123.  MISCELLANEOUS  SPECIAL  FUNDS. 

This  account  shall  include  the  amount  of  cash 'and 
the  ledger  value  of  securities  of  other  companies  and 
other  assets  in  insurance,  employees’  pension,  sav- 
* ings,  relief,  hospital,  and  other  funds  which  have  been 
raised  and  specifically  set  aside  or  invested  for  pur- 
poses not  provided  for  elsewhere;  also  the  cost  of 
securities  issued  or  assumed  by  the  accounting  com- 
pany and  held  in  such  funds.  A separate  account 
shall  be  provided  for  each  fund. 

124.  SPECIAL  DEPOSITS 

This  account  shall  include  the  amounts  of  money 
and  bank  credits  in  the  hands  of  fiscal  or  other  agents 
of  the  corporation  for  the  payment  of  coupons, 
dividends  or  other  special  purposes. 

Charges  to  this  account  should  specify  the  purpose 
for  which  the  deposit  is  made.  When  such  purposes 
are  satisfied  this  account  should  be  credited  with  the 
amount  specially  deposited  to  provide  such  satisfac- 
tion. 

130.  UNAMORTIZED  DEBT  DISCOUNT  AND  EX- 

PENSE. 

This  account  shall  include  the  total  of  the  net  debit 
balances  representing  the  discount  and  expense  in 
connection  with  the  issuance  of  each  class  of  the  ac- 
counting company’s  long  term  debt. 

131.  PROPERTY  ABANDONED. 

This  account  is  intended  as  a suspense  account 
which  shall  include  the  retirement  loss  (i.  e.,  the 
original  cost,  estimated  if  not  known,  plus  cost  of  dis- 
mantling, less  salvage)  on  property  destroyed  or 
abandoned  because  of  replacement,  of  obsolescence,  of 


II 


an  extraordinary  casualty,  or  for  any  other  reason 
when  such  loss  has  not  been  provided  for  in  advance 
through  a reserve.  Charges  to  this  account  shall  be 
made  only  with  the  permission  of  the  commission, 
and  the  amount  so  charged  shall  be  amortized  through 
annual  or  more  frequent  charges  over  a definitely 
determined  period  to  such  accounts  as  shall  be  proper. 
Application  to  the  commission  for  permission  to  use 
this  account  shall  give  full  particulars  concerning  the 
property  abandoned  or  retired,  the  reasons  for  its 
retirement,  the  accounts  through  which  it  is  pro- 
posed to  amortize  the  retirement  loss,  and  the  future 
period  over  which,  in  the  judgment  of  the  company 
making  the  application,  the  amount  of  such  charge 
should  be  distributed. 

132.  JOBBING  ACCOUNTS. 

This  account  shall  include  the  balances  in  accounts 
with  customers  or  others  for  jobbing  work  not  com- 
pleted at  the  date  as  of  which  the  balance  sheet  is 
stated.  Such  accounts,  when  work  is  completed  and 
charges  made,  shall  be  cleared  by  charges  to  accounts 
receivable. 

133.  CLEARING  OR  APPORTIONMENT  AC- 

COUNTS. 

This  account  shall  include  the  balances  in  accounts 
maintained  to  carry  temporarily  the  cost  of  operating 
such  facilities  as  garages,  stables,  storehouses,  etc., 
and  also  overhead  or  burden  costs  such  as  it  is  desir- 
able shall  be  apportioned  over  the  construction  and 
operating  accounts  involved. 

The  charges  to  operating  accounts  and  the  credits 
to  these  accounts  should,  unless  there  is  some  good 
reason  to  the  contrary,  be  so  distributed  that  the 
costs  for  any  one  year  will  be  absorbed  by  the  trans- 
actions occurring  during  that  year.  (Keeping  this 
account  is  optional  with  the  company.) 

134.  MISCELLANEOUS  SUSPENSE. 

This  account  shall  include  all  debits  not  elsewhere 
provided  for,  the  proper  final  dispositiBn  of  which  is 
uncertain.  This  will  include  the  cost  of  tentative  or 
preliminary  surveys,  designs,  and  investigations  made 
for  determining  the  feasibility  of  projects  under  con- 
templation. If  the  project  is  thereafter  definitely  un- 
dertaken, such  amount  shall  be  credited  to  this  ac- 
count and  charged  to  the  proper  work  order,  fixed 
capital,  or  other  account.  If  the  project  is  abandoned 
the  cost  of  the  preliminary  investigation  shall  be 


12 


charged  to  the  appropriate  operating  expense  or  other 
account.  Whenever  the  proper  disposition  of  any 
matter  charged  to  this  account  is  determined,  it  shall 
be  credited  to  this  account  and  charged  to  the  appro- 
priate account. 

140.  DISCOUNT  ON  CAPITAL  STOCK. 

This  account  shall  include  the  total  of  the  net  debit 
balances  representing  the  discount  on  capital  stock, 
issued  or  assumed  by  the  accounting  company. 

141.  REACQUIRED  SECURITIES. 

When  securities,  whether  debt  or  stocks,  have  been 
actually  issued  by  the  accounting  company  to  bona 
fide  holders  for  value  (or  after  such  issue  by  another 
corporation  have  been  assumed  by  the  accounting  com- 
pany) and  after  such  issue  (or  assumption  have  been 
acquired  by  the  accounting  company  under  circum- 
stances which  require  that  they  shall  not  be  treated 
as  paid  or  retired,  they  shall  be  charged  at  face  value 
to  this  account.  If  the  price  at  which  such  securi- 
ties have  been  reacquired  is  greater  or  less  than  the 
par  or  face  value,  the  difference  shall  be  adjusted 
through  Profit  and  Loss  or  through  the  appropriate 
discount  or  premium  account. 

Note.  A.  — This  account  shall  not  include  securities  that 
are  merely  guaranteed. 

Note.  B. — This  account  shall  not  include  any  securities 
held  in  sinking  and  other  reserve  funds. 

142.  TREASURY  SECURITIES. 

This  account  shall  include  the  par  value  of  securi- 
ties which  have  been  nominally  but  not  actually  issued 
by  the  accounting  company. 

143.  PROFIT  AND  LOSS  — DEFICIT. 

Under  this  head  shall  be  shown  the  debit  balance 
if  any,  in  the  Profit  and  Loss  Account.  (See  Profit 
and  Loss  Account.) 


LIABILITIES. 

150.  CAPITAL  STOCK, 
a.  Preferred  Stock. 

Preferred  stocks  are  those  which  have  the  first 
claim  upon  such  dividends  as  may  be  distributed.  They 
may  be  cumulative  or  non-cumulative,  participating  or 
non-participating. 


i3 


If  cumulative,  the  amount  by  which  the  dividend, 
at  any  dividend  period,  fails  to  reach  the  stipulated 
rate,  is  carried  forward  to  continue  as  a claim  upon 
dividends  until  satisfied;  if  non-cumulative  such 
amount  lapses. 

If  preferred  stock  is  participating,  it  is  not  limited 
to  the  stipulated  rate  in  the  amount  of  dividends 
which  it  may  receive,  but  is  entitled  to  participate, 
in  accordance  with  the  terms  of  the  contract  under 
which  it  is  issued,  in  further  dividends;  if  non- 
participating it  is  limited  to  the  stipulated  rate. 

A separate  account  should  be  kept  for  each  class 
of  stock  issued,  and  no  two  stocks  should  be  con- 
sidered of  the  same  class  unless  they  are  equal  in  their 
interest  or  dividend  rights,  their  voting  rights  and 
the  conditions  under  which  they  may  be  retired.  The 
characteristics  of  any  class  of  stocks  in  these  regards 
should  be  designated  in  the  title  of  the  account  raised 
to  cover  such  stocks  and  should  be  clearly  expressed 
in  the  first  entry  in  such  account. 

If  such  issue  is  for  money,  that  fact  should  be 
stated;  and  if  for  any  other  consideration  than  money, 
the  person  to  whom  issued  should  be  designated  and 
the  consideration  for  which  issued  should  be  described 
with  sufficient  particularity  to  identify  it.  If  the  fair 
cash  value  of  the  consideration  realized  upon  the  issue 
of  any  amount  of  stock  is  greater  than  the  par  value 
of  such  stock,  the  excess  should  be  credited  to  the 
account  “Premium  on  Capital  Stock  ” No.  151. 

b.  Common  Stock. 

Common  stocks  are  those  whose  claims  in  the  dis- 
tribution of  dividends  are  subordinate  to  the  claims 
of  all  other  stocks. 

151.  PREMIUM  ON  CAPITAL  STOCK. 

This  account  shall  include  the  excess  of  the  actual 
money  value  (at  the  time  of  issue  of  the  stock) 
of  the  consideration  received  for  such  issue  over  the 
par  value  of  the  amount  of  stock  issued  and  accrued 
dividends,  if  any,  expressed  in  the  contract  of  issue. 
If  the  stock  is  issued  by  the  corporation  to  its  treasurer 
or  other  agent,  the  excess  of  the  actual  money  value 
of  the  consideration  obtained  by  such  agent  in  ex- 
change for  such  stock  over  the  par  value  and  accrued 
dividends  thereof  shall  be  considered  the  premium 
realized.  A separate  ledger  account  shall  be  main- 
tained for  each  class  of  stock  as  distinguished  accord- 
ing to  the  text  of  the  preceding  account.  Entries 
in  these  accounts  shall  be  carried  therein  until  off- 


2 


14 


set  by  credits  to  “ Profit  and  Loss  ” upon  reacquisi- 
tion of  the  stock  or  by  credits  to  “ Cash  ” or  other 
similar  account  in  case  the  corporation  is  permitted 
and  elects  to  distribute  to  its  stockholders  all  or  any 
part  of  the  premium  realized  on  its  capital  stock. 

152.  LONG  TERM  DEBT. 

This  account  shall  include  the  total  par  value  of 
all  debt  except  receiver’s  certificates  and  advances 
from  affiliated  companies  which  by  the  terms  of  its 
creation  does  not  mature  until  more,  than  one  year 
after  date  of  creation.  This  covers  bonds,  notes, 
mortgage  certificates,  and  all  other  forms  of  acknowl- 
edging indebtedness. 

The  records  shall  be  kept  so  that  long  term  debt  of 
different  classes  may  be  separately  shown. 

153.  RECEIVER’S  CERTIFICATES. 

When  any  receiver,  acting  under  the  orders  of  a 
competent  court,  is  in  possession  of  the  property  of 
a corporation,  and  under  the  orders  of  such  court 
issues  certificates  of  indebtedness  chargeable  upon 
such  property  the  par  value  of  such  certificates  shall 
be  included  in  this  account. 

Note.  — Separate  sub-accounts  shall  be  maintained  for 
receiver’s  certificates  which  mature  in  more  than  one  year 
and  those  which  mature  in  one  year  or  less  from  date 
of  issue. 

160.  NOTES  PAYABLE. 

This  account  shall  include  the  balances  represent- 
ing outstanding  obligations  in  the  form  of  notes, 
drafts,  acceptances,  or  other  similar  evidences  of  in- 
debtedness payable  on  demand  or  within  a time  not 
exceeding  one  year  from  date  of  issue. 

Note.  — Secured  notes  and  time  loans  payable  more  than 
one  year  from  date  of  issue  shall  be  included  in  account 
“Long  Term  Debt”  No.  152. 

161.  ACCOUNTS  PAYABLE. 

This  account  shall  include  the  amount  of  audited 
vouchers  or  accounts  and  audited  pay  rolls  unpaid  on 
the  date  of  the  balance  sheet;  also  balances  repre- 
senting unclaimed  wages  and  outstanding  pay  and  time 
or  discharge  checks  issued  in  payment  of  wages,  open 
accounts  with  other  companies,  except  such  as  are 
includible  under  account  “ Advances  from  Affiliated 
Companies  ” No.  173,  and  similar  items. 


i5 


1 62.  CONSUMERS’  DEPOSITS. 

This  account  shall  include  the  amounts  deposited 
with  the  accounting  company  by  consumers  as  security 
for  the  payment  of  bills.  Deposits  refunded  shall  be 
charged  to  this  account  and  credited  to  “ Cash  ” or 
to  account  “ Miscellaneous  Special  Funds  ” No.  123, 
if  a special  fund  for  such  deposits  is  maintained. 
Deposits  applicable  to  uncollectible  or  worthless  bills 
shall,  at  the  close  of  the  fiscal  year  (or  earlier  at 
the  option  of  the  accounting  company)  be  credited 
to  the  account  of  the  consumer  involved  and  debited 
to  this  account. 

163.  MATURED  INTEREST  UNPAID. 

This  account  shall  include  the  amount  of  matured 
and  unpaid  interest  on  debt  of  the  accounting  com- 
pany except  where  such  interest  is  added  to  the  face 
of  the  principal  as  is  the  usual  case  with  judgments 
and  sometimes  with  advances  from  affiliated  com- 
panies. 

164.  DIVIDENDS  DECLARED. 

This  account  shall  include  the  amount  of  any 
dividends  which  have  been  declared,  but  not  paid. 
Dividends  shall  be  credited  to  this  account  as  of  the 
day  upon  which  they  become  a liability  of  the  ac- 
counting company  (which  is  generally  the  date  upon 
which  they  are  declared)  and  when  paid  shall  be 
charged  to  this  account  and  credited  to  “ Cash  ” or 
other  suitable  account. 

165.  MATURED  LONG  TERM  DEBT  UNPAID. 

This  account  shall  include  the  amount  of  long  term 
debt  matured  and  unpaid  without  specific  agreement 
for  extension  as  to  time  of  payment,  including  un- 
presented bonds  drawn  for  redemption  through  the 
operation  of  sinking  and  redemption  fund  agreements. 

Note.  — Real  estate  mortgages  whose  nominal  maturity 
has  been  reached  but  which  by  mutual  agreement  between 
mortgagee  and  mortgagor  are  continued  indefinitely  as 
obligations  of  the  accounting  company,  need  not  be  trans- 
ferred to  this  account,  but  may  continue  to  be  carried 
in  account  “Long  Term  Debt”  No.  152. 

166.  MISCELLANEOUS  CURRENT  LIABILITIES. 

This  account  shall  include  the  balances  in  all  open 
accounts  representing  current  liabilities  not  specifically 
provided  for  in  the  foregoing  accounts. 


i6 


170.  TAXES  ACCRUED. 

This  account  shall  include  the  amount  of  taxes 
accrued  and  properly  charged  against  income  or  other 
accounts  in  excess  of  the  amount  of  taxes  paid  as 
shown  by  the  credit  balance  in  the  tax  liability  ac- 
count. 

Note.  — An  open  account  entitled  “ Tax  Liability  Ac- 
count ” shall  be  raised  and  to  it  shall  be  credited  at  the 
close  of  each  accounting  period  taxes  accrued  during  the 
period,  corresponding  debits  being  made  to  the  appropriate 
accounts  for  tax  charges.  Such  credits  will  necessarily 
be  based  upon  estimate,  but  from  time  to  time  during  the 
year  as  the  actual  tax  levies  become  known,  the  amount  of 
the  periodic  credits  shall  be  adjusted  so  as  to  include  as 
nearly  as  may  be  possible  in  each  year  the  taxes  applicable 
thereto.  When  any  tax  is  paid,  it  shall  be  charged  to  the 
“ Tax  Liability  Account”  and  credited  to  “ Cash”  or  other 
suitable  account.  A debit  balance  in  the  “ Tax  Liability 
Account  ” due  to  the  prepayment  of  taxes  applicable  to 
the  period  subsequent  to  the  date  of  the  balance  sheet 
shall  be  shown  under  account  “ Prepaid  Accounts  ” No. 
1 15,  while  a credit  balance  shall  be  shown  under  account 
“Taxes  Accrued.”  No.  170. 

171.  INTEREST  ACCRUED. 

This  account  shall  include  the  amount  of  interest 
on  all  indebtedness  of  the  accounting  company  ex- 
cept where  such  interest  is  added  to  the  face  of  the 
principal  as  in  the  usual  case  with  judgments  and 
sometimes  with  advances  from  affiliated  companies, 
accrued  to  the  date  of  the  balance  sheet  but  not  pay- 
able until  after  that  date.  When  such  interest  is 
paid,  it  shall  be  charged  to  this  account  and  credited 
to  “ Cash  ” or  other  suitable  account.  Separate  sub- 
accounts shall  be  maintained  for  each  item  of  indebted- 
ness. 

When  interest  matures  without  being  paid,  it  shall 
be  charged  to  this  account  and  credited  to  account 
“ Matured  Interest  Unpaid  ” No.  163.  Payments  to 
trustees  (or  other  agents)  of  the  holders  of  bonds  or 
other  securities  of  the  interest  accrued  thereon  which 
operate  under  the  terms  of  the  securities  (or  of  mort- 
gages supporting  such  securities)  as  a release  of  the 
paying  company  from  further  liability  for  such  inter- 
est shall  be  considered  equivalent  to  payments  of  in- 
terests made  direct  to  bond-holders  and  such  interest 
shall  not  be  credited  to  “ Matured  Interest  Unpaid  ” 
No.  163. 

The  interest  accrued  upon  any  judgment  against 
the  accounting  company  shall  not  be  credited  to  this 
account,  but  to  the  account  to  which  such  judgment 
stands  credited. 


17 


172.  MISCELLANEOUS  ACCRUED  LIABILITIES. 

This  account  shall  include  the  balances  in  all  ac- 
counts representing  accrued  liabilities  other  than  in- 
terest or  taxes. 

173.  ADVANCES  FROM  AFFILIATED  COM- 

PANIES. 

This  account  shall  include  the  par  value  of  non- 
negotiable  notes  due  to  affiliated  companies,  credit 
balances  in  open  accounts  with  such  companies  other 
than,  credit  balances  in  credit  accounts  classable  as 
current  liabilities,  and  interest  accrued  on  notes  and 
open  accounts  included  in  this  account  when  such  in- 
terest is  not  subject  to  current  settlement.  Two 
companies  are  affiliated  if  either  one  controls  the 
policy  of  the  other,  or  if  both  are  subject  to  the  same 
control. 

This  account  shall  be  sub-divided  as  follows : 

a.  Notes,  including  both  time  and  demand  notes; 

b.  Open  accounts  not  subject  to  current  settle- 
ment ; 

c.  Interest  accrued  on  amounts  included  in  this 
account  when  not  subject  to  current  settlement. 

Accounts  with  affiliated  companies  which  are  sub- 
ject to  current  settlement,  such  as  charges  for  ma- 
terials and  supplies  currently  furnished,  charges  for 
repairs  to  equipment,  etc.,  shall  be  classed  as  current 
assets  or  current  liabilities  as  may  be  appropriate. 
Negotiable  notes  due  to  affiliated  companies  shall  not 
be  included  in  this  account  but  in  account  “ Notes 
Payable  ” No.  160. 

180.  DEPRECIATION  RESERVE. 

Every  water  company  shall  carry  a proper  and  ade- 
quate depreciation  reserve  to  cover  the  full  replace- 
ment of  all  tangible  capital  in  service.  There  shall  be 
opened  a depreciation  account  to  which  shall  be 
charged  monthly,  crediting  the  depreciation  reserve, 
No.  180,  an  amount  equal  to  one-twelfth  of  the  esti- 
mated annual  depreciation  of  the  tangible  capital  in 
service  of  the  utility,  or  as  near  that  amount  as  the 
finances  of  the  property  will  permit.  The  estimate 
here  required  shall  be  made  upon  a rule  designed  to 
effect  by  its  uniform  application  during  the  life  of 
the  tangible,  capital  in  service,  a charge  into  operat- 
ing expenses  of  the  total  original  cost  of  such  cap- 
ital, less  its  salvage  or  scrap  value  upon  retirement. 


i8 


181.  CASUALTIES  AND  INSURANCE  RESERVE. 

When  any  admitted  liability  arises  because  of  loss 
or  damage  to  the  property  of  others,  or  of  injuries 
to  employees  or  other  persons,  the  amount  of 
liability  may,  (if  not  previously  provided  for  by  in- 
surance or  self-insurance)  be  charged  to  the  appro- 
priate operating  expense  or  other  accounts  and  cred- 
ited to  this  account  against  which  (in  such  case)  the 
actual  cost  of  satisfaction  of  the  liability  shall  be 
charged  when  the  matter  is  determined.  If  the  ex- 
tent of  the  liability  cannot  be  ascertained  promptly 
after  the  liability  arises,  it  may  be  estimated  as  ac- 
curately as  practicable  for  the  purpose  of  determining 
the  immediate  charge  to  the  expense  or  other  appro- 
priate account,  in  which  case  the  matter  shall  be  ad- 
justed when  the  extent  of  the  liability  is  definitely 
ascertained.  If  the  loss  is  of  such  character  that  it 
is  in  whole  or  in  part  indemnifiable  under  any  con- 
tract of  insurance  carried  by  the  accounting  company, 
the  indemnifiable  portion  of  the  loss  shall  be  charged 
to  the  insurer  and  credited  to  “ Casualties  and  In- 
surance Reserve  ” No.  181.  This  account  shall  also 
include  the  amounts  charged  to  the  operating  ex- 
pense account  “ Insurance  ” to  cover  self  carried 
risks. 

182.  UNAMORTIZED  PREMIUM  ON  DEBT. 

When  long  term  debt  securities  or  other  evidences 
of  indebtedness  are  disposed  of  for  a consideration 
whose  cash  value  (exclusive  of  accrued  interest)  is 
greater  than  the  par  value  of  such  securities  or  other 
evidences  of  indebtedness,  the  excess  of  such  cash 
value  of  the  consideration  received  over  the  par  value 
of  the  securities  or  other  evidences  of  indebtedness 
shall  be  credited  to  this  account.  At  regular  account- 
ing intervals  thereafter  a proper  portion  of  such  pre- 
mium, based  upon  the  life  of  the  security  or  other 
evidence  of  indebtedness  to  maturity,  shall  be  charged 
to  this  account  and  credited  to  account  “ Amortiza- 
tion of  Premium  on  Debt  ” No.  320  in  the  income 
account. 

183.  SINKING  FUND  RESERVE. 

This  account  shall  include  the  net  balances  in  ac- 
counts to  which  are  credited,  in  accordance  with 
the  requirement  of  mortgages  and  other  contracts,  or 
by  action  of  the  company’s  directors,  definite  appro- 
priations of  income  and  surplus  whether  held  in  gen- 
eral funds  or  specifically  set  aside  in  the  hands  of 
trustees,  for  the  purpose  of  retiring  or  redeeming 
bonds  or  other  obligations  of  the  accounting  company. 


i9 


It  shall  also  include  such  accretions  from  the  invest- 
ment of  funds  specifically  set  aside  for  the  above 
described  purpose  as  are  required  to  be  added  to  the 
reserve. 

When  the  debt  which  the  sinking  fund  is  created 
to  redeem  matures  and  the  fund  has  accomplished  its 
purpose,  the  balance  in  the  reserve  shall  be  charged  to 
this  account  and  credited  to  “ Profit  and  Loss.”  If  the 
mortgage  or  other  obligation  permits,  the  par  value 
of  bonds  or  other  evidences  of  indebtedness  issued 
or  assumed  by  the  accounting  company  which  are  re- 
acquired through  the  operations  of  a sinking  fund 
may  be  charged  to  this  account  and  credited  to  “ Profit 
and  Loss  ” when  and  as  such  bonds  or  other  evidences 
of  indebtedness  are  acquired. 

184.  CONTRIBUTIONS  FOR  EXTENSIONS. 

To  this  account  shall  be  credited  contributions  in 
money  or  property  made  to  the  accounting  company 
for  the  purpose  of  assuming  the  burden  or  any  part 
of  the  burden  represented  by  the  investment  neces- 
sary for  the  establishment  or  extension  of  services 
rendered  by  the  company.  This  covers  such  items  as 
contributions  toward  the  cost  of  line  extensions  in 
sparsely  settled  territory  made  by  consumers,  either 
voluntarily  or  when  reasonably  required  by  the  com- 
pany as  a condition  of  giving  the  desired  service,  and 
the  cost  of  services  to  which  the  company  has  title, 
in  so  far  as  such  cost  is  borne  by  the  consumer; 
it  also  covers  grants  from  municipal  or  other  gov- 
ernmental bodies  or  contributions  from  chambers  of 
commerce  and  similar  organizations  made  with  the 
object  of  establishing  a new  service  in  the  community 
by  assuming  part  of  the  investment  cost  of  the  enter- 
prise. 

Note.  — This  does  not  include  advances  for  the  construc- 
tion of  extensions  which  are  ultimately  to  be  repaid  the 
consumer. 

185.  CONTINGENCY  RESERVE. 

This  account  shall  include  such  amounts  as  the  ac- 
counting company  may  desire  to  set  aside  to  provide 
against  unforeseen  contingencies. 

186.  MISCELLANEOUS  RESERVES. 

This  account  shall  include  the  balances  in  all  reserves 
other  than  those  provided  for  in  the  six  preceding  ac- 
counts. A description  of  each  such  reserve  giving 
the  purpose  for  which  it  is  created  and  a summary 
of  debits  and  credits  thereto  during  the  year  may  be 
required  in  annual  reports  to  the  commission. 


20 


Note.  — If  the  accounting  company  maintains  operating 
reserves  for  the  purpose  of  equalizing  expenses  from 
month  to  month  such  reserves  shall  be  cleared  annually 
unless  there  remains  a credit  balance  due  to  the  non- 
completion of  maintenance  work  because  of  adverse  labor 
conditions,  non-receipt  of  material,  or  other  similar 
reasons,  in  which  case  such  part  of  the  balance  as  is  ap- 
plicable to  unfinished  work  may  be  carried  over  to  the  fol- 
lowing year.  Under  no  circumstances  shall  a debit 
balance  be  carried  over  the  year. 

187.  MISCELLANEOUS  UNADJUSTED  CREDITS. 

This  account  shall  include  the  amount  of  credit 
balances  in  suspense  accounts  that  cannot  be  entirely 
cleared  and  disposed  of  until  additional  information 
is  received. 

188.  PROFIT  AND  LOSS  — SURPLUS. 

Under  this  head  shall  be  shown  the  credit  balance, 
if  any,  in  the  Profit  and  Loss  Account.  See  “ Profit 
and  Loss  ” account. 


21 


SCHEDULE  OF  FIXED  CAPITAL  ACCOUNTS 

Page 

101.  FIXED  CAPITAL  INSTALLED  PRIOR  TO  JAN- 

UARY i,  1922  22 

102.  FIXED  CAPITAL  INSTALLED  SINCE  DECEMBER 

31,  1921  22 

103.  COST  OF  FIXED  CAPITAL  PURCHASED  22 

104.  CONSTRUCTION  WORK  IN  PROGRESS  22 

105.  FIXED  CAPITAL  IN  OTHER  DEPARTMENTS  ....  23 

200.  ORGANIZATION  23 

201.  FRANCHISES  : 23 

202.  PATENT  RIGHTS  23 

I.  WATER  COLLECTING  SYSTEM. 

203.  WATER  DIVERSION  RIGHTS  24 

204.  RESERVATIONS  24 

205.  IMPOUNDING  DAMS  AND  RESERVOIRS  ‘ 24 

206.  LAKE  AND  RIVER  CRIBS  24 

207.  SPRINGS  AND  WELLS  24 

208.  INFILTRATION  GALLERIES  AND  TUNNELS  ....  25 

209.  COLLECTING  CONDUITS  AND  RESERVOIRS  ....  25 

210.  GRAVITY  INTAKES  AND  SUCTION  MAINS  .....  25 

21 1.  AQUEDUCTS  AND  SUPPLY  MAINS  25 

II.  PURIFICATION  SYSTEM. 

212.  SETTLING  BASINS  25 

213.  COAGULATING  BASINS  26 

214.  SOFTENING  AND  IRON  REMOVAL  PLANT  26 

215.  FILTERS  26 

216.  OZONE  STERILIZING  AND  AERATION  PLANT  . . 26 

217.  CHEMICAL  TREATMENT  PLANT  27 

218.  CLEAR  WATER  BASINS  27 

III.  PUMPING  SYSTEM. 

219.  PUMPING  STATIONS  27 

220.  STEAM  POWER  PUMPING  EQUIPMENT  27 

221.  HYDRAULIC  POWER  PUMPING  EQUIPMENT  ..  28 

222.  ELECTRIC  POWER  PUMPING  EQUIPMENT  28 

223.  GAS  POWER  PUMPING  EQUIPMENT  28 

224.  MISCELLANEOUS  PUMPING  EQUIPMENT  28 

IV.  DISTRIBUTION  SYSTEM. 

225.  TRANSMISSION  MAINS  AND  ACCESSORIES  ....  28 

226.  STORAGE  RESERVOIRS,  TANKS  AND  STAND 

* PIPES  29 

227.  DISTRIBUTION  MAINS  AND  ACCESSORIES  ....  29 

228.  SERVICE  PIPES  AND  STOPS  29 

229.  METERS,  METER  BOXES  AND  VAULTS  29 

230.  FIRE  HYDRANTS  AND  FIRE  CISTERNS  29 

231.  FOUNTAINS,  TROUGHS  AND  OTHER  EQUIP- 

MENT   30 

V.  MISCELLANEOUS. 

232.  GENERAL  STRUCTURES  30 

233.  GENERAL  EQUIPMENT  30 

234.  GENERAL  OFFICE  EQUIPMENT  30 

235.  GENERAL  SHOP  EQUIPMENT  30 

236.  GENERAL  STORE  EQUIPMENT  31 

237.  GENERAL  STABLE  EQUIPMENT  31 

238.  OTHER  TANGIBLE  WATER  CAPITAL  31 

239.  OTHER  INTANGIBLE  WATER  CAPITAL  31 

240.  ENGINEERING  AND  SUPERINTENDENCE  31 

241.  LAW  EXPENDITURES  DURING  CONSTRUCTION  32 

242.  INJURIES  DURING  CONSTRUCTION  32 

243.  TAXES  DURING  CONSTRUCTION  32 

244.  MISCELLANEOUS  CONSTRUCTION  EXPENDI- 

TURES   33 

245.  INTEREST  DURING  CONSTRUCTION  33 


22 


TEXT  PERTAINING  TO  FIXED  CAPITAL  ACCOUNTS 

101.  FIXED  CAPITAL  INSTALLED  PRIOR  TO 

JANUARY  i,  1922. 

(For  Municipal  Companies  and  such  other  com- 
panies as  report  to  the  Public  Utilities  Commission 
for  the  first  time.) 

Charge  to  this  account  the  book  value  at  the  close 
of  December  31,  1921,  of  all  fixed  capital  owned  and 
used  by  the  utility  in  the  conduct  of  its  water  opera- 
tions. No  charge  shall  be  made  to  this  account  for 
any  fixed  capital  acquired  after  December  31,  1921. 

102.  FIXED  CAPITAL  INSTALLED  SINCE  DE- 

CEMBER 31,  1921. 

Charge  to  this  account  the  cost  of  all  fixed  capital 
installed  since  December  31,  1921,  and  used  by  the 
utility  in  the  conduct  of  its  water  operations.  See 
Accounts  Nos.  200-245. 

103.  COST  OF  FIXED  CAPITAL  PURCHASED. 

Charge  to  this  account  the  cash  value  of  the  con- 
sideration given  for  fixed  capital  in  the  form  of  a 
going  or  completed  water  system  or  of  any  portion 
of  such  system  purchased  from  others. 

In  connection  with  the  purchase  of  property  charge- 
able to  this  account,  the  utility  shall  procure  all  ex- 
isting records,  memoranda,  and  books  of  accounts  in 
the  possession  or  control  of  the  grantor  relating  to 
the  construction  and  improvement  of  such  property 
and  shall  preserve  such  records,  memoranda,  and 
books  of  accounts.  If  it  is  impracticable  to  transfer 
such  records,  memoranda,  and  books  of  accounts,  the 
utility  shall  procure  copies  of  them  certified  by  the 
custodian  of  the  originals. 

104.  CONSTRUCTION  WORK  IN  PROGRESS. 

Charge  to  this  account  all  expenditures  under  esti- 
mates, work  orders,  or  other  forms  of  authorization 
for  structures  and  equipment  in  process  of  construc- 
tion. Such  expenditures  shall  also  include  that  pro- 
portion of  expenses  of  supervision,  engineering,  tools, 
store,  and  other  like  general  expenses  that  may  be  as- 
signed to  such  construction  work.  When  such  work 
is  completed,  credit  this  account  and  charge  to  the 
appropriate  fixed  capital  or  other  accounts  the  cost  of 
the  completed  work. 

This  account  shall  be  so  carried  that  the  utility  can 
furnish  a complete  analysis  of  the  expenditures  under 
each  estimate,  work  order,  or  other  form  of  authoriza- 
tion. 


23 


io5. 


200. 


201. 


202. 


FIXED  CAPITAL  IN  OTHER  DEPARTMENTS. 

This  account  includes  the  cost  of  all  property  of 
the  company  coming  within  the  definition  of  tangible 
capital  devoted  to  its  operations  other  than  water. 

ORGANIZATION. 

Charge  to  this  account  all  fees  paid  to  governments 
for  the  privilege  of  incorporation,  and  all  office  and 
other  expenditures  incident  to  organizing  the  cor- 
poration or  other  enterprise  and  putting  it  in  readiness 
to  do  business.  This  includes  cost  of  preparing  and 
distsibuting  prospectuses,  cost  of  soliciting  subscrip- 
tions for  stock  (but  not  for  loans  nor  for  the  pur- 
chase of  bonds  or  other  evidences  of  indebtedness), 
cash  fees  paid  to  promoters  and  the  actual  cash  value 
at  the  time  of  organization  of  securities  paid  to  pro- 
moters for  their  services  in  organizing  the  enterprise, 
counsel  fees,  cost  of  preparing  and  issuing  certificates 
of  stock  and  cost  of  procuring  certificates  of  necessity 
from  State  authorities  and  other  like  costs.  Like 
costs  incident  to  preparing  and  filing  certificates  of 
authorization  of  increase  in  capital  stock,  and  to  the 
negotiation  and  issue  of  stock  thereunder,  and  cost 
of  preparing  and  filing  certificates  of  amendment  of 
articles  of  incorporation  should  also  be  charged  here- 
under. This  account  shall  not  include  any  discounts 
upon  stocks  or  other  securities  issued  nor  shall  it 
include  any  costs  incident  to  negotiating  loans  or  sell- 
ing bonds  or  other  evidence  of  indebtedness. 

FRANCHISES. 

Charge  to  this  account  the  amount  (exclusive  of 
any  tax  or  annual  charge)  actually  paid  to  the  state 
or  any  political  subdivision  thereof  as  the  considera- 
tion for  the  grant  of  such  franchise  or  right  as  is 
necessary  to  the  conduct  of  the  corporation’s  water 
operations.  Any  excess  of  the  amount  actually  paid 
by  the  corporation  over  the  amounts  specified  in  the 
statute,  if  any,  should  be  charged  to  account  “ Other 
Intangible  Water  Capital  ” No.  239.  If  any  such 
franchise  has  a life  of  not  more  than  one  year  after 
the  date  when  it  is  placed  in  service,  it  should  not  be 
charged  to  this  account  but  to  the  appropriate  Oper- 
ating Expense  accounts. 

PATENT  RIGHTS. 

Charge  to  this  account  the  cost  of  all  rights  (hav- 
ing a life  of  more  than  one  year  from  the  date  when 
placed  in  service)  acquired  by  the  corporation  in  or 
under  valid  patents  granted  by  the  United  States  to 


24 


inventors  for  inventions  and  discoveries  which  are 
necessary  to  the  economical  conduct  of  the  corpora- 
tion’s water  operations. 

I.  WATER  COLLECTING  SYSTEM. 

Charge  to  the  appropriate  accounts  hereunder  the 
cost  of  all  land,  structures  and  equipment  used  in 
collecting  water  and  conveying  it  from  the  place  of 
its  collection  to  the  purification  or  pumping  plant,  or, 
in  the  case  of  a purely  gravity  system,  to  a point  in, 
or  out  of  the  municipality,  from  which  water  is  dis- 
tributed to  consumers  as  follows: 

203.  WATER  DIVERSION  RIGHTS. 

This  includes  the  cost  of  all  water  diversion  rights 
(as  distinguished  from  water  power  rights),  meaning 
thereby  the  cost  of  acquiring  from  riparian  land 
owners  the  right  to  divert  for  supply  purposes  the 
waters  of  any  stream,  and  from  neighboring  land 
owners  the  right  to  draw  from  ground  water  sources 
of  supply ; also  compensation  and  costs  in  connection 
therewith  paid  for  abating,  modifying  or  abandoning 
causes  of  allowable  pollution  of  streams  and  ground 
waters  used  for  supply;  whether  such  rights  are  ac- 
quired or  compensated  for  in  perpetuity  or  for  a 
definite  term  of  more  than  one  year. 

204.  RESERVATIONS. 

This  includes  the  cost  of  all  land  for  reservations 
along  sources  of  supply,  .and  also  the  cost  of  all 
buildings  erected  thereon  and  used  in  connection  there- 
with, as  well  as  all  equipment,  etc. 

205.  IMPOUNDING  DAMS  AND  RESERVOIRS. 

This  includes  the  cost  of  the  land  and  all  struc- 
tures thereon  used  for  impounding  water  for  supply 
purposes  at  the  sources  of  supply. 

206.  LAKE  AND  RIVER  CRIBS. 

This  includes  the  cost  of  all  land,  including  lake 
or  river  bed,  and  all  structures  thereon  used  for  col- 
lecting waters  for  supply  purposes. 

207.  SPRINGS  AND  WELLS. 

This  includes  the  cost  of  all  land  and  all  structures 
thereon  used  for  collecting  water  from  springs,  and 
of  the  wells  for  obtaining  ground  waters,  including 
the  curbing  or  casing  of  wells,  but  not  including  any 
equipment  for  pumping  water  at  wells. 


25 

208.  INFILTRATION  GALLERIES  AND  TUNNELS. 

This  includes  the  cost  of  the  land  and  rights  of  way, 
and  all  structures  thereon  and  therein,  used  for  col- 
lecting waters. 

209.  COLLECTING  CONDUITS  AND  RESERVOIRS. 

This  includes  the  cost  of  the  land  and  rights  of 
way,  and  all  structures  thereon  and  therein,  used 
for  collecting  waters  from  various  sources  and  stor- 
ing in  reservoirs  ready  for  purification,  pumping  or 
distributing,  or  for  conveying  to  the  purification  or 
pumping  plant,  or  the  distribution  system  (if  a purely 
gravity  system). 

210.  GRAVITY  INTAKES  AND  SUCTION  MAINS. 

This  includes  the  cost  of  all  land  and  rights  of 
way  and  all  structures  thereon  and  therein,  used  for 
bringing  water  by  gravity  or  suction,  from  the  source 
of  supply  to  the  purification  or  pumping  plant. 

21 1.  AQUEDUCTS  AND  SUPPLY  MAINS. 

This  includes  the  cost  of  all  land  and  rights  of 
way  and  all  structures  thereon  and  therein,  used  for 
bringing  water  by  aqueducts  or  supply  mains,  from 
the  source  of  supply  to  the  purification  or  pumping 
plant,  or  to  the  distribution  system  (if  a purely 
gravity  system). 

II.  PURIFICATION  SYSTEM. 

Charge  to  the  appropriate  accounts  hereunder  the 
cost  of  all  land,  structures  and  equipment  used  in  con- 
nection with  the  purification  of  water,  in  conveying 
water  from  one  part  of  the  purification  system  to 
another,  including  steam  or  other  power  plant  and 
pumping  equipment  when  such  power  plant  and 
pumping  plant  is  used  in  connection  with  the  delivery 
of  wash  water  for  filter  or  sand  washing,  but  not 
including  any  steam  or  other  power  plant  and  pump- 
ing  equipment  which  is  used  for  pumping  the  water 
supply  from  one  part  of  the  purification  works  to 
another,  as  follows : 

212.  SETTLING  BASINS. 

This  includes  the  cost  of  the  land  and  all  struc- 
tures thereon  for  the  sedimentation  of  water  without 
coagulation  whether  such  sedimentation  is  prelim- 
inary to  supply  or  a preliminary  step  in  conjunc- 
tion with  the  further  purification  of  water  by  some 
additional  process ; also  the  valves  and  connections 
with  the  succeeding  step  in  the  purification  process 
or  the  mains  or  other  means  of  conveyance  to  the 
pumping  plant  or  the  distribution  system  (if  a purely 
gravity  system). 


26 


213.  COAGULATING  BASINS. 

This  includes  the  cost  of  the  land  and  all  struc- 
tures thereon  used  for  the  coagulation  of  water, 
whether  such  coagulation  is  preliminary  to  supply  or 
a step  in  conjunction  with  the  further  purification 
by  some  additional  process,  or  whether  used  as  a step 
in  purification  following  sedimentation ; also  the  cost 
of  equipment  such  as  coagulent  mixing  and  storage 
tanks,  orifice  boxes  and  feeder  equipment,  valves  and 
connections  with  the  succeeding  step  in  the  process, 
or  the  mains  or  other  means  of  conveyance  to  the 
pumping  plant  or  distribution  system  (if  a purely 
gravity  system),  appliances  for  cleaning  out  basins, 
etc. 

214.  SOFTENING  AND  IRON  REMOVAL  PLANT. 

This  includes  the  cost  of  the  land  and  all  struc- 
tures thereon  used  for  the  process  of  water  soften- 
ing and  iron  removal;  also  all  equipment  and  appli- 
ances connected  with  and  forming  a part  of  the 
softening  or  iron  removal  plant  including  all  connec- 
tions with  the  succeeding  step  in  the  purification  pro- 
cess or  the  mains  or  other  means  of  conveyance  to 
the  pumping  plant  or  the  distribution  system  (if  a 
purely  gravity  system),  appliances  for  cleaning  out 
basins,  etc. 

215.  FILTERS. 

This  includes  the  cost  of  the  land  and  all  structures 
thereon  used  for  filtration  purposes,  whether  such 
filters  be  “ roughing  filters,”  “ slow  sand  filters,”  or 
“ mechanical  filters  ” ; also  all  equipment  and  appli- 
ances forming  a part  of  such  filters,  cleaning  and  sand 
washing  equipment,  etc.,  and  all  connections  with  the 
succeeding  step  in  the  purification  process  or  the 
mains  or  other  means  of  conveyance  to  the  pumping 
plant  or  the  distribution  system  (if  a purely  gravity 
system)  mechanical  and  air  agitation  equipment  with 
the  power  plant  therefor. 

216.  OZONE  STERILIZING  AND  AERATION 

PLANT. 

This  includes  the  cost  of  the  land  and  all  structures 
thereon  used  for  the  process  of  water  purification  or 
treatment  by  the  ozone  sterilizing  or  aeration  process, 
including  all  equipment  or  appliances  connected  or 
forming  a part  of  the  plant,  and  all  connections  with 
the  succeeding  step  in  the  purification  process,  or  the 
mains  or  other  means  of  conveyance  to  the  pumping 
plant  or  the  distribution  system  (if  a purely  gravity 
system). 


27 


217.  CHEMICAL  TREATMENT  PLANT. 

This  includes  the  cost  of  the  land  and  all  structures 
thereon  used  for  the  chemical  treatment  of  water, 
whether  such  treatment  is  preliminary  or  subsequent 
to  some  further  or  preceding  process  of  purification 
or  treatment  of  water  by  some  additional  process  or 
whether  such  chemical  treatment  is  the  sole  method 
of  treatment  of  the  water  supply. 

Included  here  are  all  buildings,  equipment  and  ap- 
pliances such  as  mixing  tanks  and  gravity  or  pump 
feed  apparatus,  basins,  if  any,  and  all  connections 
with  the  next  step  in  the  purification  process,  or  the 
mains  or  other  means  of  conveyance  to  the  pumping 
plant  or  the  distribution  system  (if  a purely  gravity 
system). 

218.  CLEAR  WATER  BASINS. 

This  account  is  provided  only  for  the  use  of  com- 
panies which  employ  some  system  or  method  of  puri- 
fication, and  to  it  should  be  charged  the  cost  of  the 
land  and  all  structures  thereon  used  for  the  storing 
of  water  either  in  process  of  purification  as  an  inter- 
mediate step  in  the  purification  system,  or  as  the  final 
storage  of  purified  water  ready  for  delivery  to  the 
pumping  plant  or  the  distribution  system  (if  a purely 
gravity  plant).  This  account  includes  also  the  cost 
of  equipment  and  appliances  and  connections,  from 
the  clear  water-basins  to  the  suction  or  wet  wells  for 
pumping  or  to  the  pumps  direct,  or  to  the  supply  or 
suction  main  or  other  means  of  conveyance  to  the 
pumping  plant  or  distribution  system. 

III.  PUMPING  SYSTEM. 

Charge  to  the  appropriate  accounts  hereunder  the 
cost  of  all  land,  buildings  and  equipment  used  in  con- 
nection with  the  pumping  of  water,  as  follows: 

219.  PUMPING  STATIONS. 

This  includes  the  cost  of  land  and  all  buildings 
thereon,  forming  a part  of  the  pumping  system,  in- 
cluding out-buildings,  tool  houses,  shops,  etc.,  and  all 
appurtenant  walks,  fences,  drives  and  all  permanently 
attached  fixtures  forming  a part  thereof. 

220.  STEAM  POWER  PUMPING  EQUIPMENT. 

This  includes  the  cost  of  all  steam  plant  and  equip- 
ment, and  the  accessory  equipment  such  as  boilers 
and  their  settings,  stacks  and  foundations,  fuel  and 
ash  handling  and  storage  equipment,  super-heaters, 
economizers,  damper  regulators,  and  all  piping,  etc., 
and  other  appliances. 


28 


22 1.  HYDRAULIC  POWER  PUMPING  EQUIP- 

MENT. 

This  includes  the  cost  of  all  land  other  than  that 
occupied  by  the  pumping  station  and  buildings,  to- 
gether with  the  cost  of  all  water  power  rights  (as 
distinguished  from  water  supply  diversion  rights) 
and  the  cost  of  all  structures  provided  exclusively 
for  the  development  of  hydraulic  power,  such  as 
dams,  headgates,  canals,  flumes,  relief  structures,  and 
appurtenant  power  generating  equipment,  such  as 
water  wheels  with  control  equipment  and  power  trans- 
mission equipment  from  water  wheels  to  pumps  and 
also  pumps  and  pumping  equipment,  etc. 

222.  ELECTRIC  POWER  PUMPING  EQUIPMENT. 

This  includes  the  cost  of  all  equipment  used  for 
pumping  water  by  electric  power,  whether  such  power 
is  purchased  or  generated  by  the  company  itself,  also 
the  pumps  and  pumping  equipment  and  all  appurte- 
nant equipment  and  appliances. 

223.  GAS  POWER  PUMPING  EQUIPMENT. 

This  includes  the  cost  of  all  equipment  used  for 
pumping  water  by  gas  power,  whether  such  power  is 
obtained  from  purchased  gas,  or  from  producer  gas 
plant.  Included  here  are  the  cost  of  gas  producer 
plants  and  apparatus,  gas  storage  and  transmission 
equipment,  gas  engines,  pumps  and  pump  equipment, 
etc. 

224.  MISCELLANEOUS  PUMPING  EQUIPMENT. 

This  includes  the  cost  of  all  equipment,  apparatus 
and  appliances  used  in  connection  with  the  pumping 
plant  but  not  properly  includible  in  any  of  the  pre- 
ceding accounts. 

IV.  DISTRIBUTION  SYSTEM. 

225.  TRANSMISSION  MAINS  AND  ACCESSORIES. 

Charge  to  this  account  the  cost  of  all  land  and 
rights-of-way  and  of  all  mains,  pipes  and  special  cast- 
ings, valves  and  valve  vaults,  and  boxes,  etc.  belong- 
ing to  the  transmission  system  and  all  other  acces- 
sories to  the  transmission  mains.  By  transmission 
mains  are  meant  those  which  convey  water  for  long 
distances  without  having  any  connections  thereto  for 
service  therefrom,  from  the  pumping  station  to  the 
distributing  storage  reservoir  or  the  distributing  sys- 
tem mains.  Transmission  mains  apply  only  in  case 
of  water  works  operating  pumping  stations ; in  the 
case  of  gravity  systems  these  mains  would  come 
under  the  designation  of  supply  or  distribution  mains. 


29 


226.  STORAGE  RESERVOIRS,  TANKS  AND 

STANDPIPES. 

Charge  to  this  account  the  cost  of  all  land,  reser- 
voirs, tanks  and  standpipes  with  the  appurtenant 
buildings/  structures  and  equipment  connected  there- 
with, used  for  the  storage  of  water  preliminary  to  its 
distribution  for  consumption. 

227.  DISTRIBUTION  MAINS  AND  ACCESSORIES. 

Charge  to  this  account  the  cost  of  all  land  and 
rights-of-way  for  main  pipe  lines  and  the  cost  of  all 
main  pipes  and  special  castings  used  for  distribution 
of  water  to  customers.  (Data  as  to  the  length  of 
pipe  of  each  diameter  and  the  date  of  their  installa- 
tion should  be  carefully  kept).  Also  the  cost  of  all 
gate  valves  in  the  distribution  mains,  together  with 
the  boxes  over  such  valves,  and  the  cost  of  installing 
the  valves  and  boxes.  Also  the  cost  of  all  special 
fixtures  and  appliances  connected  to  the  main  pipes 
together  with  the  cost  of  installing  same,  such  as 
regulating  valves,  air  chambers,  relief  valves,  blow- 
off  cocks,  flush  plugs,  etc. 

228.  SERVICE  PIPES  AND  STOPS. 

* 

Charge  to  this  account  the  cost  of  material  and 
labor  including  all  other  costs  and  charges  incurred  in 
connection  therewith;  such  as  permit  fees,  etc.,  ac- 
cruing in  the  installation  of  service  pipes  and  stops 
from  main  pipes  to  the  customers’  premises,  when  it 
is  the  policy  of  the  company  that  such  costs  shall  be 
capitalized,  and  when  costs  of  the  services  so  in- 
stalled are  not  borne  by  the  customer,  although  the 
company  may  have  full  control  over  the  same. 

229.  METERS,  METER  BOXES  AND  VAULTS. 

Charge  to  this  account  the  cost  of  all  meters,  meter 
boxes  and  meter  vaults,  together  with  the  cost  of 
their  installation,  which  are  furnished  on  customers’ 
service  connections  without  charge  to  the  customer. 

230.  FIRE  HYDRANTS  AND  FIRE  CISTERNS. 

Charge  to  this  account  the  cost  of  all  hydrants  and 
fire  cisterns  together  with  the  cost  of  pipe,  valves 
etc.,  connecting  same  with  distribution  main  pipes, 
and  the  cost  of  installing  same. 


3 


30 


231.  FOUNTAINS,  TROUGHS,  AND  OTHER 

EQUIPMENT. 

Charge  to  this  account  the  cost  of  all  fountains, 
troughs,  and  other  equipment  and  appliances  for  the 
utilization  of  the  water  supply  by  the  general  public, 
together  with  the  cost  of  their  connection  and  in- 
stallation, which  are  installed  at  the  cost  of  and  are 
owned  by  the  company. 

V.  MISCELLANEOUS. 

232.  GENERAL  STRUCTURES. 

Charge  to  this  account  the  cost  of  all  land,  build- 
ings and  other  structures  used  for  general  offices, 
laboratories,  general  store-houses,  general  stable 
buildings,  shops,  etc.,  which  are  not  includible  in  any 
of  the  foregoing  accounts ; also  the  cost  of  all  fixtures 
permanently  attached  thereto  and  made  a part 
thereof,  such  as  water  pipes  and  fixtures,  steam 
pipes  and  fixtures  for  warming  and  ventilating,  gas 
pipes  and  fixtures  for  lighting,  etc.,  electric  wiring 
and  fixtures  for  lighting,  signaling,  etc.,  elevators,  etc., 
and  the  engines  and  motors  specially  provided  for 
operating  them ; furnaces,  boilers,  etc.,  specially  pro- 
vided for  producing  steam  for  such  engines  and  for 
heating ; electric  generators  specially  provided  for 
producing  current  for  lighting  such  buildings,  etc. 

This  account  includes  such  piers  and  other  founda- 
tions for  machinery  and  apparatus  as  are  designed  to 
be  as  permanent  as  the  buildings  in  (or  in  connection  * 
with)  which  they  are  constructed,  and  to  outlast  the 
first  machinery  or  apparatus  mounted  thereon. 

233.  GENERAL  EQUIPMENT. 

Charge  to  the  appropriate  accounts  hereunder  the 
cost  of  all  equipment  of  general  structures,  as  pro- 
vided under  the  following  heads : 

234.  GENERAL  OFFICE  EQUIPMENT. 

This  includes  the  cost  of  all  equipment  of  general 
offices,  such  as  desks,  chairs,  tables,  movable  safes, 
filing  cases,  drafting-room  equipment,  and  other  like 
office  appliances  and  equipment ; also  engineering  in- 
struments. 

235.  GENERAL  SHOP  EQUIPMENT. 

This  includes  the  cost  of  all  equipment  specially 
provided  for  general  shops,  such  as  furnaces,  boilers, 
gas  producers,  engines,  electric  generators,  and  other 
power  apparatus  used  in  operating  machinery  in  such 
shops ; machine  tools,  cranes,  hoists,  shafting,  belts, 
and  the  like  shop  equipment ; also  such  smithing 
equipment  in  general  shops  as  is  used  principally  for 


3i 


other  general  purposes  than  shoeing  horses  and  re- 
pairing vehicles. 

Note.  — Hand  and  other  small  portable  tools  liable  to 
be  lost  or  stolen  should  not  be  included  herein,  but  portable 
tools  and  apparatus  of  special  value  may  be  charged  to 
this  account  and  remain  therein  so  long  as  record  is  kept 
of  the  persons  to  whom  such  tools  and  apparatus  are  issued 
and  such  persons  are  made  responsible  therefor. 

236.  GENERAL  STORE  EQUIPMENT. 

This  includes  the  cost  of  all  equipment  of  general 
store  structures,  such  as  movable  counters,  movable 
shelving,  and  other  movable  equipment  of  like  nature, 
carts,  barrows,  trucks,  etc.,  and  other  apparatus  and 
appliances  used  in  handling  materials  and  supplies. 

Note.  — Counters,  shelving  and  the  like,  which  are  per- 
manently attached  to  the  structure,  should  be  charged  to 
account  “ General  Structures  ” and  not  to  this  account. 

237.  GENERAL  STABLE  EQUIPMENT. 

This  includes  the  cost  of  all  equipment  of  general 
stables,  including  horses,  harness,  drays,  wagons, 
automobiles,  and  other  vehicles,  equipment  of  shoeing 
shops,  harness  repair  shops,  vehicle  repair  shops,  etc. 

238.  OTHER  TANGIBLE  WATER  CAPITAL. 

Charge  to  this  account  the  cost  of  all  tangible  prop- 
erty devoted  to  water  operations  not  elsewhere  pro- 
vided for. 

239.  OTHER  INTANGIBLE  WATER  CAPITAL. 

Charge  to  this  account  the  cost  of  all  other  property 
coming  within  the  definition  of  intangible  capital  and 
devoted  to  water  operations.  All  entries  of  charges 
to  this  account  shall  describe  the  acquired  property 
with  sufficient  particularity  clearly  to  identify  it,  and 
shall  also  show  specifically  the  principal  from  whom 
acquired  and  all  agents  representing  such  principal  in 
the  transaction ; also  the  term  of  life  of  such  property, 
estimated  if  not  known,  and  if  estimated,  the  facts 
upon  which  the  estimate  is  based. 

240.  ENGINEERING  AND  SUPERINTENDENCE. 

Charge  to  this  account  all  expenditures  for  services 
of  engineers,  draftsmen  and  superintendents  em- 
ployed on  preliminary  and  construction  work,  and  all 
expenses  incident  to  the  work,  when  such  disburse- 
ments cannot  be  assigned  to  specific  construction. 

Note.  — When  employees  enumerated  above  are  engaged 
in  work  not  chargeable  to  construction,  their  pay  and 
expenses  should  be  charged  to  the  specific  work  on  which 
engaged. 


32 

241.  LAW  EXPENDITURES  DURING  CONSTRUC- 

TION. 

Charge  to  this  account  general  expenditures  of  the 
following  nature  incurred  in  connection  with  the 
construction  of  a water  works : namely,  the  pay  and 
expenses  of  all  counsel,  solicitors,  and  attorneys,  their 
clerks  and  attendants,  and  expenses  of  their  offices ; 
printing  briefs,  legal  forms,  testimony,  reports,  etc. ; 
payments  to  arbitrators  .for  the  settlement  of  disputed 
questions ; cost  of  suits  and  payments  of  special  fees, 
notarial  fees,  and  witness  fees ; and  expenses  con- 
nected with  taking  depositions ; also  all  legal  and 
court  expenses. 

When  any  of  the  expenditures  above  enumerated 
can  be  charged  directly  to  the  account  for  which  in- 
curred, they  should  be  so  charged  and  not  to  this 
account.  Law  expenditures  in  connection  with  the 
organization  of  the  corporation  should  be  charged 
to  account,  “ Organization  ” No.  200. 

242.  INJURIES  DURING  CONSTRUCTION. 

Charge  to  this  account  all  expenditures  incident  to 
injuries  to  persons  when  caused  directly  in  connection 
with  construction  of  water  plant  and  equipment ; pro- 
portion of  salaries  and  expenses  of  physicians  and 
surgeons ; nursing  and  hospital  attendance,  medical 
and  surgical  supplies,  artificial  limbs,  railroad  and 
carriage  fares  for  conveying  injured  persons  and 
attendants;  funeral  expenses  (including  payments  to 
undertakers)  ; proportion  of  pay  and  expenses  of 
claim  adjusters  and  their  clerks,  and  pay  and  ex- 
penses of  employees  and  others  called  in  consultation 
in  relation  to  the  adjustment  of  claims  coming  under 
this  head ; witness  fees  and  amount  of  final  judg- 
ments ; also  cost  of  liability  insurance  applicable  to 
construction. 

243.  TAXES  DURING  CONSTRUCTION. 

Charge  to  this  account  all  taxes  and  assessments 
levied  and  paid  on  property  belonging  to  the  corpora- 
tion while  under  construction  and  before  the  plant  is 
opened  for  commercial  operation,  except  special 
taxes  assessed  for  street  and  other  improvements, 
such  as  grading,  sewering,  curbing,  guttering,  paving, 
sidewalks,  etc.,  which  should  be  charged  to  the  ac- 
count to  which  the  property  benefited  is  charged. 


33 


244.  MISCELLANEOUS  CONSTRUCTION  EX- 

PENDITURES. 

This  account  includes  the  salaries  and  expenses  of 
executive  and  general  officers  of  a water  works  under 
construction ; clerks  in  general  offices  engaged  on 
construction  accounts  or  work ; rent  and  repair  of 
general  offices  when  rented,  and  office  expenses ; in- 
surance during  construction  other  than  ‘liability  in- 
surance ; also  all  construction  and  equipment  items 
of  a special  and  incidental  nature  which  cannot  prop- 
erly be  charged  to  any  other  account  in  this  classifi- 
cation. 

Note  A. — This  account  may  include  a suitable  propor- 
tion of  store  expenses  when  such  expenses  are  not  assign- 
able to  specific  materials. 

Note  B. — This  account  should  not  include  any  cost  of 
organization,  or  any  cost  or  discounts  connected  with  the 
issue  and  disposal  of  stocks,  funded  debt,  or  other  secu- 
rities, and  commercial  paper. 

245.  INTEREST  DURING  CONSTRUCTION. 

This  account  includes  the  interest  accrued  upon  all 
moneys,  and  credits  available  upon  demand,  acquired 
for  use  in  connection  with  the  construction  and  equip- 
ment of  the  property  from  the  time  of  acquisition 
until  the  construction  is  ready  for  use.  Interest  re- 
ceivable accrued  upon  such  moneys  and  credits  should 
be  credited  to  this  account.  To  this  account  should 
also  be  credited  discounts  realized  through  prompt 
payment  of  bills  for  materials  and  supplies  used  in 
construction,  unless  such  discounts  are  credited  to 
the  particular  bills. 


* 


34 


301. 

302. 
305- 
306. 


307- 

308. 

309. 


310. 

311. 

315. 

316. 

317. 


318. 

319. 

320. 


321. 


322. 


325. 


326. 

327. 


SCHEDULE  OF  INCOME  ACCOUNTS 


Page 


OPERATING  REVENUES  

OPERATING  EXPENSES  

UNCOLLECTIBLE  OPERATING  REVENUES  

TAXES  ASSIGNABLE  TO  OPERATIONS  

Federal  Taxes  

. State  Taxes  

Municipal  Taxes  

PROFIT  ON  MERCHANDISE  SALES  

PROFIT  ON  PIPING  AND  CONNECTIONS  

RENTS  FROM  LAND,  BUILDINGS  OR  APPARA- 
TUS   

INTEREST  AND  DIVIDENDS  

MISCELLANEOUS  NON-OPERATING  INCOME  ... 

INTEREST  ON  LONG  TERM  DEBT  

MISCELLANEOUS  INTEREST  DEDUCTIONS  

RENT  FOR  LEASE  OF  OTHER  WATER  PLANT 

AND  EQUIPMENT.  

TAXES  ASSIGNABLE  TO  NON-OPERATIONS  ... 

SINKING  FUND  APPROPRIATIONS  

AMORTIZATION  OF  PREMIUM  ON  DEBT  — 

CREDIT  

AMORTIZATION  OF  DEBT  DISCOUNT  AND  EX- 
PENSE 

MISCELLANEOUS’ ' DEDUCTIONS  ' FROM  ’ GROSS 

INCOME  

DIVIDEND  APPROPRIATIONS  OF  INCOME  

ON  COMMON  STOCK  

ON  PREFERRED  STOCK  

MISCELLANEOUS  APPROPRIATIONS  OF  NET 

INCOME  

TAXES  ON  NET  INCOME  


35 

35 

35 

35 

35 

35 

35 

36 
36 


37 

37 

37 

37 


38 


38 

38 

39 


39 


39 

39 

39 

39 

39 


40 

40 


35 


TEXT  PERTAINING  TO  INCOME  ACCOUNTS 

301.  OPERATING  REVENUES. 

Under  this  head  shall  be  shown  the  total  revenues 
of  the  accounting  company  from  water  operations 
during  the  period  covered  by  the  income  account. 
(For  the  primary  operating  revenue  accounts,  see 
Accounts  Nos.  501-507). 

302.  OPERATING  EXPENSES. 

Under  this  head  shall  be  shown  the  total  expenses 
of  the  accounting  company  for  water  operations  dur- 
ing the  period  covered  by  the  income  account.  (For 
the  primary  operating  expense  accounts,  see  Accounts 
Nos.  601-621.) 

305.  UNCOLLECTIBLE  OPERATING  REVENUES. 

When  any  bill  rendered  for  the  sale  of  water  or 
other  product  of  water  operations  or  for  services  per- 
formed in  connection  therewith  has  proved,  after 
reasonably  diligent  effort,  impracticable  of  collection, 
the  amount  should  be  charged  to  this  account  and 
credited  to  the  account  receivable  in  which  it  has 
theretofore  been  carried. 

306.  TAXES  ASSIGNABLE  TO  OPERATIONS. 

This  account  shall  include  the  amount  of  taxes  paid 
or  accrued  applicable  to  the  water  operations  of  the 
accounting  company  during  the  period  for  which  the 
income  account  is  stated. 

Separate  accounts  shall  be  kept  of  the  taxes  ap- 
plicable to  water  operations  and  to  operations  other 
than  water,  as  well  as  to  non-operating  revenues,  if 
the  accounting  company  has  such  other  operations 
or  non-operating  revenues.  When  taxes  are  levied 
on  property  used  in  two  or  more  different  classes  of 
operations  in  such  a way  that  the  amount  applicable 
to  each  class  is  not  definitely  stated,  the  total  amount 
of  the  levy  shall  be  apportioned  by  the  accounting 
company  on  some  fair  basis  between  the  two  or  more 
classes  of  operations.  In  annual  reports  to  the  com- 
mission the  basis  of  such  apportionment  may  be  re- 
quired. 

The  tax  accounts  shall  be  charged  at  regular  ac- 
counting intervals  and  the  “ Tax  Liability  Account  ” 
(see  note  under  account  No.  170,  “ Taxes  Accrued  ”) 
concurrently  credited  with  the  period’s  proportion  of 
taxes  applicable  to  the  operations  covered  by  each 
account.  If  the  exact  amounts  of  the  annual  taxes 
are  not  known,  they  shall  be  estimated  and  a due 
share  of  the  estimated  amounts  shall  be  charged  for 


36 


each  accounting  period.  From  time  to  time  during 
the  year  as  the  actual  tax  levies  become  known,  the 
periodic  charges  shall  be  adjusted  so  as  to  include  as 
nearly  as  possible  the  total  amount  of  the  taxes  in 
the  period  to  which  they  apply.  This  account  should 
be  so  kept  that  the  amount  applicable  to  Federal,  state 
and  municipal  taxes  can  be  separately  shown. 


NON-OPERATING  REVENUES. 

307.  PROFIT  ON  MERCHANDISE  SALES. 

Credit  to  this  account  the  receipts  derived  from  the 
sale  of  water  appliances  and  plumbing  fixtures  used 
in  the  consumption  and  utilization  of  water.  Profit, 
as  used  in  this  account,  is  defined  as  being  the  excess 
of  the  sales  price  over  the  cash  cost,  including  the 
invoice  cost,  cost  of  handling,  storage,  etc.,  if  such 
merchandise  is  passed  through  the  stores  department. 
Charge  this  account  with  all  expenses  for  labor  and 
material  in  connection  with  the  sale  of  such  ap- 
pliances or  merchandise.  The  net  amount  only,  or 
the  profit  on  merchandise  sales,  is  to  be  carried  to 
the  Income  Account.  The  credits  and  charges  to 
this  account  shall  be  made  in  such  a manner  as  to 
admit  of  a detailed  analysis  when  called  for  by  the 
commission. 

308.  PROFIT  ON  PIPING  AND  CONNECTIONS. 

Credit  this  account  with  all  earnings  derived  from 
piping  and  connection  work  performed  by  the  utility. 
This  includes  earnings  from  services  performed  on 
the  consumers’  premises,  such  as  piping  the  con- 
sumers’ premises,  connecting  and  disconnecting  house 
piping  and  water  fixtures,  the  relocation  of  piping  or 
apparatus,  and  other  plumbing  and  fixture  work.  If 
prospective  consumers  are  charged  for  services  per- 
formed by  the  water  utility  in  connecting  the  house 
piping  and  plumbing  with  the  service  connection,  or 
for  laying  such  service  piping,  such  earnings  shall  be 
credited  to  this  account.  Where  the  cost  of  laying  the 
service  connection  is  charged  to  the  property  owner, 
such  work  shall  not  be  included  in  tangible  capital. 
Charge  to  this  account  all  expenses  for  labor  and 
materials  in  connection  with  such  operation,  the  net 
amount  only,  or  the  profit  from  such  piping  and  con- 
nection work,  being  carried  to  the  Income  Account. 
The  credits  and  charges  to  this  account  will  be  made 
in  such  a manner  as  to  admit  of  a detailed  analysis 
when  called  for  by  the  Commission. 


309.  RENTS  FROM  LAND,  BUILDINGS  OR  AP- 

PARATUS. 

^Credit  to  this  account,  as  it  accrues,  all  revenue 
from  the  rental  of  land,  buildings,  equipment,  appa- 
ratus and  appliances.  Where  the  contract  for  the 
rental  of  any  apparatus  or  appliances  covers  also  the 
cost  of  connecting  such  apparatus  and  its  main- 
tenance, the  entire  revenues  from  such  contract  shall 
be  credited  to  this  account. 

To  this  account  shall  be  charged  all  expenses  in- 
curred in  connection  with  the  collection  of  rents, 
commissions  and  fees  therefor ; the  cost  of  procuring 
tenants  for  buildings,  drawing  contracts  and  leases, 
advertising  for  tenants  of  such  buildings ; expenses 
of  ouster  proceedings,  and  taxes,  unless  the  taxes  are 
to  be  paid  by  the  tenant.  Any  expenses  accruing 
while  land  and  buildings  are  idle,  also  repairs  upon 
such  property,  will  be  charged  to  this  account.  Only 
the  net  revenue  or  profit  from  the  above  transactions 
will  be  carried  to  the  Income  Account  in  the  annual 
report. 

Credits  and  charges  to  this  account  are  to  be  made 
in  such  a manner  as  to  admit  of  a detailed  analysis 
being  made  when  called  for  by  the  commission. 

310.  INTEREST  AND  DIVIDENDS. 

Credit  to  this  account  all  interest  as  it  accrues  upon 
interest  bearing  securities  which  are  liabilities,  either 
actual  or  contingent,  of  solvent  companies,  states,  cities 
or  individuals,  held  as  investments  by  the  water  util- 
ity ; also  all  interest  received  from  banks,  etc.,  for  de- 
posits placed  therein. 

Credit  to  this  account  the  cash  value,  as  on  the 
date  when  they  become  collectible,  of  dividends  upon 
the  stocks,  of  corporations  held  as  investments  by  the 
water  utility. 

31 1.  MISCELLANEOUS  NON-OPERATING  IN- 

COME. 

Credit  to  this  account  all  revenues  from  non-operat- 
ing sources  not  includible  in  any  of  the  preceding  ac- 
counts. 

This  account  may  be  subdivided  to  show  revenues 
from  any  particular  source. 

315.  INTEREST  ON  LONG  TERM  DEBT. 

This  account  shall  include  all  interest  accrued  on 
outstanding  long  term  debt  issued  or  assumed  by 
the  accounting  company,  the  liability  for  which  is  in- 
eluded  under  balance  sheet  account  No.  152,  “ Long 


38 


Term  Debt  ” ; also  interest  accrued  on  debenture  stocks 
and  on  receiver’s  certificates  which  mature  more  than 
one  year  after  date  of  issue.  This  account  does  not 
include  interest  on  securities  held  by  the  accounting 
company  in  its  treasury,  in  sinking  or  other  special 
funds,  or  pledged  as  collateral. 

Note  A.  — The  amount  charged  to  this  account  shall  be 
concurrently  credited  to  account  “ Interest  Accrued  ” to 
which  account  shall  be  debited  payments  made  on  account 
of  interest. 

Note  B.  — If  any  securities  issued  or  assumed  by  the 
accounting  company  are  held  in  a sinking  or  other  special 
fund,  the  interest  on  such  securities  shall  not  be  charged 
to  this  account. 

316.  MISCELLANEOUS  INTEREST  DEDUCTIONS. 

This  account  shall  include  interest  on  all  short- 
term obligations  of  the  accounting  company  such  as 
notes  or  loans  for  terms  of  less  than  one  year,  unpaid 
taxes,  consumers’  deposits,  or  other  accounts  payable, 
etc.  It  shall  also  include  interest  on  advances  from 
affiliated  companies  (see  balance  sheet  account  “Ad- 
vances From  Affiliated  Companies,”  No.  173)  ; and 
interest  on  receiver’s  certificates  which  mature  in  one 
year  or  less  after  date  of  issue. 

317.  RENT  FOR  LEASE  OF  OTHER  WATER 

PLANT  AND  EQUIPMENT. 

Charge  to  this  account  all  amounts  accrued  against 
the  accounting  person  or  corporation  for  rent  of  water 
plant  and  equipment  which  it  holds  under  some  form 
of  lease  from  another  company  or  corporation  and  of 
which  it  has  the  exclusive  possession. 

Taxes  accrued  on  such  plant  and  equipment  should 
not  be  charged  to  this  account,  but  to  the  appro- 
priate Taxes  account.  If  under  the  contract  of  lease 
such  taxes  are  payable  by  the  lessor  or  reversioner, 
they  should  be  credited  to  this  account  and  charged  to 
the  appropriate  Taxes  account.  When  paid  by  the 
lessor  or  reversioner,  they  should  be  charged  to  its 
rent  revenue  account,  and  not  to  its  Taxes  account, 
to  the  end  that  taxes  upon  such  plant  and  equipment 
may  be  reported  by  the  corporation  in  possession. 

318.  TAXES  ASSIGNABLE  TO  NON-OPERATIONS. 

Charge  to  this  account  the  amount  paid  or  accrued 
for  taxes  of  every  description  chargeable  to  non- 
operating property  or  transactions.  This  account 
should  be  so  kept  that  the  amount  applicable  to  Fed- 
eral, state  and  municipal  taxes  can  be  separately 
shown. 


39 


319.  SINKING  FUND  APPROPRIATIONS. 

This  account  shall  include  such  amounts  as  are 
required  by  mortgage  provision  or  otherwise  to  be 
charged  to  income  for  the  purpose  of  retiring  or  re- 
ducing the  bonded  or  other  obligations  of  the  account- 
ing company.  It  shall  also  include  such  accretions 
from  the  investment  of  funds  specifically  set  aside  for 
the  above  described  purpose  as  are  required  to  be 
added  to  the  sinking  fund  reserve. 

320.  AMORTIZATION  OF  PREMIUM  ON  DEBT- 

OR. 

This  account  shall  include  for  any  fiscal  period 
the  proportion  of  the  premium  at  which  outstanding 
debt  was  issued  which  was  applicable  to  the  period. 
This  proportion  shall  be  determined  according  to  a 
rule  the  uniform  application  of  which  during  the  in- 
terval between  the  issue  and  maturity  of  any  debt  will 
completely  amortize  or  wipe  out  the  premium  at 
which  such  debt  was  issued. 

321.  AMORTIZATION  OF  DEBT  DISCOUNT  AND 

EXPENSE. 

This  account  shall  include  for  any  fiscal  period 
that  proportion  of  the  unamortized  discount  and  ex- 
pense on  outstanding  debt  which  is  applicable  to  the 
period. 

This  proportion  shall  be  determined  according  to 
a rule  the  uniform  application  of  which  during  the 
interval  between  the  issue  and  maturity  of  any  debt, 
will  completely  amortize  or  wipe  out  the  discount  at 
which  such  -debt  was  issued  and  the  debt  expense 
connected  therewith. 

322.  MISCELLANEOUS  DEDUCTIONS  FROM 

GROSS  INCOME. 

This  account  shall  include  all  deductions  from  in- 
come not  provided  for  in  the  preceding  accounts. 

325.  DIVIDEND  APPROPRIATIONS  OF  INCOME. 

This  account  shall  include  amounts  declared  payable 
as  dividends,  out  of  the  income  for  the  period  for 
which  the  income  account  is  stated,  on  actually  out- 
standing capital  stock  issued  or  assumed  by  the  ac- 
counting company. 

This  account  shall  be  subdivided  so  as  to  show 
separately  the  dividends  on  the  various  classes  of 
capital  stock. 


40 


If  the  dividend  is  not  payable  in  cash,  the  consid- 
eration shall  be  described  in  the  entry  with  sufficient 
particularity  to  identify  it. 

Note.  — This  account  shall  not  include  charges  for  di- 
vidends on  capital  stock  issued  or  assumed  by  the  ac- 
counting company  and  owned  by  it  whether  held  in  the 
treasury  in  special  deposits,  in  sinking  or  other  reserve 
funds,  or  pledged  as  collateral. 

326.  MISCELLANEOUS  APPROPRIATIONS  OF 

NET  INCOME. 

This  account  shall  include  all  appropriations  of  net 
income  not  provided  for  in  the  preceding  accounts. 

327.  TAXES  ON  NET  INCOME. 

This  account  shall  include  accruals  to  cover  the 
accounting  company’s  liability  for  the  payment  of 
Federal  income  tax,  Federal  excess  profits  tax,  state 
income  taxes,  or  other  similar  taxes  when  such  taxes 
are  not  allowed  by  the  commission  as  revenue  de- 
ductions in  computing  the  “ fair  ” return  on  invested 
capital,  but  are  considered  to  be  a charge  against 
the  stockholders  or  other  owners  of  the  enterprise 
instead  of  an  expense  of  the  business  to  be  trans- 
ferred to  the  public  through  the  prices  charged  for 
the  service  which  the  accounting  company  renders. 

This  account  shall  be  charged  at  regular  accounting 
intervals  and  the  “Tax  Liability  Account”  (see  note 
under  account  No.  170,  “ Taxes  Accrued  ”)  concur- 
rently credited  with  the  period’s  proportion  of  such 
taxes.  If  the  exact  amount  of  the  annual  taxes  is 
not  known,  it  shall  be  estimated  and  a due  share  of 
the  estimated  amount  be  charged  fpr  each  accounting 
period.  From  time  to  time  during  the  year,  as  the 
actual  tax  levies  become  known,  the  periodic  charges 
shall  be  adjusted  so  as  to  include  as  nearly  as  may  be 
possible  the  total  amount  of  the  taxes  in  the  period  to 
which  they  apply. 


41 

SCHEDULE  OF  PROFIT  AND  LOSS  ACCOUNTS. 

Page 

PROFIT  AND  LOSS  ACCOUNT 
DEBIT 

BALANCE  AT  BEGINNING  OF  YEAR  

BALANCE  TRANSFERRED  FROM  INCOME  AC- 
COUNT   

401.  DIVIDEND  APPROPRIATIONS  OF  SURPLUS  ....  42 

402.  MISCELLANEOUS  DEBITS  42 

CREDIT 

BALANCE  AT  BEGINNING  OF  YEAR  

BALANCE  TRANSFERRED  FROM  INCOME  AC- 
COUNT   

404.  APPROPRIATIONS  FROM  MUNICIPAL  FUNDS 


(FOR  MUNICIPAL  PLANTS  ONLY)  4 2 

405.  MISCELLANEOUS  CREDITS  42 


42 


TEXT  PERTAINING  TO  PROFIT  AND  LOSS  ACCOUNTS. 

401.  DIVIDEND  APPROPRIATIONS  OF  SURPLUS. 

This  account  shall  include  amounts  declared  pay- 
able as  dividends  out  of  accumulated  surplus  on  ac- 
tually outstanding  capital  stock  issued  or  assumed  by 
the  accounting  company. 

This  account  shall  be  divided  so  as  to  show  sep- 
arately the  dividends  on  the  various  classes  of  capital 
stocks. 

If  a dividend  is  not  payable  in  cash,  the  considera- 
tion shall  be  described  in  the  entry,  with  sufficient 
particularity  to  identify  it. 

Note.  — This  account  shall  not  include  charges  for 
dividends  on  capital  stock  issued  or  assumed  by  the  ac- 
counting company,  and  owned  by  it,  whether  held  in  the 
treasury,  in  special  deposits,  in  sinking  or  other  reserve 
funds,  or  pledged  as  collateral. 

402.  MISCELLANEOUS  DEBITS  TO  PROFIT  AND 

LOSS. 

This  account  shall  include  all  debits  affecting  the 
accounting  company’s  surplus  or  deficit  and  not  else- 
where provided  for,  such  as: 

Adjustments  or  cancellation  of  balance  sheet  ac- 
counts, 

Losses  or  deficits  not  properly  chargeable  to  income 
and  for  which  no  reserve  has  been  provided, 

Losses  resulting  from  the  sale  of  miscellaneous  in- 
vestments and  debits  resulting  from  adjustments  re- 
quired to  bring  to  par  securities  issued  or  assumed 
by  the  accounting  company  and  reacquired  at  a cost 
exceeding  the  par  value, 

Unextinguished  discounts,  on  funded  debt  reac- 
quired before  maturity, 

Donations  to  charitable  institutions  and  organiza- 
tions for  promoting  social  welfare. 

Penalties  and  fines  for  violations  of  law. 

404.  APPROPRIATIONS  FROM  MUNICIPAL 

FUNDS  (For  Municipal  Plants  Only) 

Credit  to  this  account  all  appropriations  made  by 
the  municipality  to  the  funds  of  the  accounting  utility 
for  operating  purposes.  This  account  applies  only  to 
municipal  water  companies. 

405.  MISCELLANEOUS  CREDITS  TO  PROFIT  AND 

LOSS. 

This  account  shall  include  all'  credits  affecting  the 
accounting  company’s  surplus  or  deficit  and  not  else- 
where provided  for,  such  as : 


43 


Adjustments  or  cancellation  of  balance  sheet  ac- 
counts, 

Cancellation  of  balance  sheet  accounts  representing 
unclaimed  wages  and  vouchered  accounts  written  off 
because  of  the  accounting  company’s  inability  to  locate 
the  creditor, 

Profit  derived  from  the  sale  of  miscellaneous  in- 
vestments, 

Credits  resulting  from  adjustments  required  to  bring 
to  par  securities  issued  or  assumed  by  the  accounting 
company  and  reacquired  at  a cost  less  than  par  value. 


44 


SCHEDULE  OF  OPERATING  REVENUE  ACCOUNTS. 

Page 

501.  EARNINGS  FROM  COMMERCIAL  SALES  44 

a.  Commercial  Earnings  — Flat  Rate  44 

b.  Commercial  Earnings  — Metered  44 

502.  EARNINGS  FROM  INDUSTRIAL  SALES  45 

a.  Earnings  from  Industrial  Sales  — Flat 

Rate  45 

b.  Earnings  from  Industrial  Sales  — Metered  45 

503.  EARNINGS  FROM  SALES  TO  OTHER  WATER 

COMPANIES  46 

504.  EARNINGS  FROM  MUNICIPAL  HYDRANT  RENT- 

ALS   46 

505.  EARNINGS  FROM  PRIVATE  FIRE  PROTECTION.  46 

506.  EARNINGS  FROM  SALES  FOR  STREET  SPRINK- 

LING   46 

507.  EARNINGS  FROM  SALES  TO  MUNICIPAL  DE- 

PARTMENTS   46 

508.  MISCELLANEOUS  EARNINGS  FROM  OPERATION  46 


TEXT  PERTAINING  TO  OPERATING  REVENUE  ACCOUNTS. 

501.  EARNINGS  FROM  COMMERCIAL  SALES. 

Credit  this  account  with  all  revenue  from  water 
sales  to  commercial  consumers,  both  where  the  revenue 
is  dependent  upon  the  quantity  of.  water  taken  as 
recorded  by  meter  and  where  such  water  is  sold  at 
flat  rates  and  independent  of  the  quantity  taken. 
Commercial  consumers,  as  referred  to  in  this  account, 
embrace  residences,  offices,  apartment  houses,  retail 
commercial  establishments,  etc.,  where  water  is  not 
used  primarily  for  power  or  industrial  purposes. 
Where,  however,  some  manufacturing  or  industrial 
processes  are  performed  in  any  residence,  store  or 
other  point  of  commercial  consumption,  but  such 
process  being  merely  incidental  to  the  broader  use  of 
the  premises  as  a commercial  consumer,  the  total 
consumption  at  such  premises  shall  be  credited  to  this 
account.  When  water  is  sold  both  by  meter  and  flat 
rates,  the  earnings  from  each  such  sub-division  shall 


45 


be  credited  to  sub-divisions  of  this  account  and  re- 
ported separately  to  the  commission  as  follows : 

a.  Commercial  Earnings  — Flat  Rate. 

b.  Commercial  Earnings  — Metered. 

Water  sold  to  the  municipality  for  use  in  public 
buildings  and  not  included  in  the  contract  for  hydrant 
rentals  and  other  municipal  uses,  will  be  considered  as 
Commercial  Earnings. 

Where  it  is  the  custom  of  the  utility  to  charge  a 
minimum  amount  when  the  consumption  during  the 
month  is  less  than  the  prescribed  amount,  the  total 
amount  of  such  minimum  charge  shall  be  credited  to 
this  account  or  to  its  appropriate  sub-account.  Where 
it  is  the  custom  of  the  utility  to  grant  a discount 
from  the  gross  bill  or  to  add  a penalty  to  the  bill 
when  payment  is  not  made  on  or  before  a prescribed 
date,  such  discounts  or  penalties  shall  be  charged  or 
credited  to  this  account.  Utilities  desiring  to  do  so 
may  open  sub-accounts  to  show  the  Minimum  Bill 
and  Discount  or  Penalty  items. 

502.  EARNINGS  FROM  INDUSTRIAL  SALES. 

Credit  this  account  with  all  earnings  from  the  sale 
of  water  for  power  and  industrial  purposes  to  manu- 
facturing and  industrial  establishments.  Where  water 
is  sold  at  a different  rate  for  any  particular  kind  of 
industrial  use,  the  earnings  from  such  separate  sources 
shall  be  credited  to  appropriate  subdivisions  of  this 
account  and  reported  separately  to  the  commission. 
Where  water  is  sold  both  by  meter  and  flat  rates,  the 
earnings  from  each  such  division  shall  be  credited  to 
subdivisions  of  this  account  and  reported  separately 
to  the  commission  as  follows : 

a.  Earnings  From  Industrial  Sales  — Flat  Rate. 

b.  Earnings  From  Industrial  Sales  — Metered. 

Where  it  is  the  custom  of  the  utility  to  charge  a 
minimum  amount  in  cases  where  the  consumption  dur- 
ing the  month  is  less  than  a prescribed  amount,  the 
total  amount  of  such  minimum  charge  shall  be  credited 
to  this  account  or  to  its  appropriate  sub-account. 
Where  it  is  the  custom  of  the  utility  to  grant  a dis- 
count from  the  gross  bill  or  to  add  a penalty  to  the 
bill  where  payment  is  not  made  on  or  before  a pre- 
scribed date,  such  discount  or  penalty  shall  be  charged 
or  credited  to  this  account.  Utilities  desiring  to  do 
so  may  open  sub-accounts  to  show  the  Minimum  Bill 
. and  Discount  or  Penalty  items. 


4 


46 

503.  EARNINGS  FROM  SALES  TO  OTHER  WATER 

COMPANIES. 

Credit  this  account  with  the  net  amount  earned  by 
the  company  from  its  sales  of  water  to  other  com- 
panies or  municipalities.  This  account  should  be  so 
kept  that  it  will  show  the  amount  earned  from  each 
company  or  municipality  to  which  water  is  sold. 

504.  EARNINGS  FROM  MUNICIPAL  HYDRANT 

RENTALS. 

Credit  this  account  with  all  revenues  received  from 
the  municipality  for  hydrant  service.  Where  the 
hydrant  rental  paid  by  the  municipality  includes  the 
use  of  water  for  street  sprinkling  and  flushing  pur- 
poses, and  such  water  not  being  separately  metered, 
the  total  revenue  collected  under  such  contract  for 
hydrant  rental  will  be  credited  to  this  account. 

505.  EARNINGS  FROM  PRIVATE  FIRE  PROTEC- 

TION. 

Credit  this  account  with  all  revenue  received  for 
private  fire  protection. 

506.  EARNINGS  FROM  SALES  FOR  STREET 

SPRINKLING. 

Credit  this  account  with  all  earnings  from  sales 
of  water  for  street  sprinkling,  both  to  individuals  and 
contractors  engaged  in  sprinkling  streets,  parks  and 
thoroughfares,  and  also  with  sales  to  the  municipality, 
where  such  sprinkling  is  performed  by  the  city. 

507.  EARNINGS  FROM  SALES  TO  MUNICIPAL 

DEPARTMENTS. 

Credit  this  account  with  all  earnings  from  the  sale 
of  water  to  municipal  departments  other  than  for 
street  sprinkling,  if  such  is  performed  by  the  munici- 
pality. This  includes  earnings  from  the  sale  of  water 
for  sewer  and  street  flushing,  street  construction, 
filling  fire  cisterns  and  basins,  etc.,  by  the  municipality. 
Where  a special  contract  is  entered  into  between  the 
municipality  and  the  utility  for  water  service  at  public 
buildings,  as  schools,  police  and  fire  stations,  city 
hall,  etc.,  revenue  collected  under  such  contract  will 
be  credited  to  this  account.  A record  should  be  kept 
also  of  the  revenue  received  from  each  separate 
municipal  department. 

508.  MISCELLANEOUS  EARNINGS  FROM  OPER- 

ATION. 

Credit  this  account  with  all  earnings  received  from 
operating  transactions  not  properly  includible  in  the 
preceding  accounts. 


47 


SCHEDULE  OF  OPERATING  EXPENSE  ACCOUNTS 

I.  WATER  SUPPLY  EXPENSES  — OPERA- 

TIONS. 

Page 

601.  COLLECTING  SYSTEM  EXPENSES  48 

a.  Reservation  and  Drainage  Area  48 

b.  Impounding  Dams  and  Reservoirs  48 

c.  Lake  and  River  Cribs  48 

d.  Springs  and  Wells  48 

e.  Infiltration  Galleries  and  Tunnels  48 

f.  Collecting  Conduits  and  Reservoirs  48 

g.  Gravity  Intakes  and  Suction  Mains  48 

h.  Aqueducts  and  Supply  Mains  48 

602.  PURIFICATION  SYSTEM  EXPENSES  49 

a.  Sedimentation  and  Coagulation  49 

b.  Softening  and  Iron  Removal  49 

c.  Filtration  49 

d.  Chemical  Treatment  49 

e.  Clear  Water  Basins  49 

603.  PUMPING  SYSTEM  EXPENSES  49 

a.  Operating  Labor  49 

b.  Fuel  49 

c.  Power  Purchased  50 

d.  Miscellaneous  Supplies  and  Expenses  ....  50 

604.  DISTRIBUTION  EXPENSES  50 

a.  Transmission  Mains  and  Accessories  ....  50 

b.  Storage  Reservoirs,  Tanks  and  Standpipes  50 

c.  Distribution  Mains  and  Accessories  50 

d.  Service  Pipes  and  Stops  50 

e.  Meters,  Meter  Boxes  and  Vaults  50 

f.  Fire  Hydrants  and  Cisterns  50 

g.  Fountains,  Troughs  and  Other  Equipment  50 

605.  WATER  PURCHASED  50 

II.  WATER  SUPPLY  EXPENSES  — MAIN- 

TENANCE. 

606.  REPAIRS  OF  WATER  COLLECTING  SYSTEM  ...  50 

607.  REPAIRS  OF  PURIFICATION  SYSTEM  51 

608.  REPAIRS  OF  PUMPING  SYSTEM  51 

609.  REPAIRS  OF  DISTRIBUTION  SYSTEM  51 

a.  Repairs  of  Transmission  Mains  and  Ac- 

cessories   51 

b.  Repairs  of  Storage  Reservoirs,  Tanks  and 

Standpipes  52 

c.  Repairs  of  Distribution  Mains  and  Acces- 

sories   52 

d.  Repairs  of  Service  Pipes  and  Stops  52 

e.  Repairs  of  Meters,  Meter  Boxes  and  Vaults  52 

f.  Repairs  of  Fire  Hydrants  and  Cisterns  . . 52 

g.  Repairs  of  Fountains,  Troughs  and  Other 

Equipment  53 

610.  GENERAL  REPAIRS  53 

611.  DEPRECIATION  53 


/|8 


612. 


613. 


614. 

615. 

616. 

617. 

618. 
610. 


620. 


621. 


III.  GENERAL  AND  MISCELLANEOUS  EX- 
PENSES. 


Page 


ADMINISTRATION  EXPENSES  54 

a.  Salaries  and  Expenses  of  General  Officers  54 

b.  Salaries  and  Expenses  of  General  Office 

Clerks  54 

c.  General  Office  Supplies . and  Expenses  ....  54 

ACCOUNTING  AND  COMMERCIAL  EXPENSES  . . 55 

a.  Salaries  and  Expenses  of  Accounting  and 

Commercial  Employees  55 

b.  Accounting  and  Commercial  Office  Supplies 

and  Expenses  55 

BUSINESS  PROMOTION  EXPENSES  55 

LEGAL  EXPENSES  55 

INJURIES  AND  DAMAGES  55 

INSURANCE  56 

RELIEF  DEPARTMENT  AND  PENSIONS  56 

STORE,  GARAGE  AND  STABLE  EXPENSES  56 

a.  Store  Expenses  56 

b.  Garage  and  Stable  Expenses  56 

MISCELLANEOUS  ADJUSTMENT  BALANCE  ....  56 

a.  Inventory  Adjustment  Balance  56 

b.  Discount  on  Material  and  Supplies  — Cr.  57 

c.  Duplicate  Water  Charges  — Cr 57 

d.  Water  Expenses,  Transfer  — Cr 57 

e.  Joint  Operating  Expenses — Cr 57 

MISCELLANEOUS  GENERAL  EXPENSES  57 


TEXT  PERTAINING  TO  OPERATING  EXPENSE  ACCOUNTS. 

I.  WATER  SUPPLY  EXPENSES  — OPERA- 
TIONS. 

601.  COLLECTING  SYSTEM  EXPENSES. 

Charge  to  this  account  the  operating  costs  or  ex- 
penses of,  or  connected  directly  with  the  several  parts 
of  the  entire  water  supply  system,  which  are  included 
in  the  accounts  “Fixed  Capital”  Nos.  203-211.  This 
includes  all  wages  and  expenses  for  inspecting  and 
policing,  caretakers  and  other  employees,  but  does  not 
include  repairs. 

This  account  may  if  desired  by  the  company,  or 
required  by  the  commission,  be  further  classified 
under  the  following  headings,  which  shall  be  the 
titles  of  sub-accounts  set  up  hereunder: 

a.  Reservation  and  Drainage  Area. 

b.  Impounding  Dams  and  Reservoirs. 

c.  Lake  and  River  Cribs. 

d.  Springs  and  Wells. 

e.  Infiltration  Galleries  and  Tunnels. 

f.  Collecting  Conduits  and  Reservoirs. 

g.  Gravity  Intakes  and  Suction  Mains. 

h.  Aqueducts  and  Supply  Mains. 


49 


602.  PURIFICATION  SYSTEM  EXPENSES. 

Charge  to  this  account  all  expenses  or  costs  inci- 
dent to  the  purification  of  water.  These  expenses 
include  the  wages  of  men  employed  at  the  purification 
works,  their  personal  and  incidental  expenses,  the 
expenses  of  running  the  works,  including  the  cost  of 
chemicals  and  supplied,  labor  for  cleaning  basins  and 
works,  removing  ice,  scraping  and  cleaning  purifica- 
tion apparatus,  heating,  lighting,  etc. 

The  cost  of  repairs  to  the  purification  plant  owned 
by  the  company  (accounts  “ Fixed  Capital  ” Nos.  212- 
218,  should  not  be  charged  to  this  account). 

This  account  may  if  desired  by  the  company  or 
required  by  the  commission  be  further  classified 
under  the  following  headings,  which  shall  be  the  titles 
of  sub-accounts  set  up  hereunder : 

a.  Sedimentation  and  Coagulation. 

b.  Softening  and  Iron  Removal. 

c.  Filtration. 

d.  Chemical  Treatment. 

e.  Clear  Water  Basins. 

603.  PUMPING  SYSTEM  EXPENSES. 

Charge  to  the  appropriate  sub-accounts  hereunder 
the  expenses  of  pumping  water  and  of  running  that 
part  of  the  water  works  system  which  is  included  in 
accounts  Nos.  219-224.  These  expenses  include  the 
salaries  and  wages,  personal  expenses  of  pumping 
station  employees,  fuel,  water  power,  electric  power, 
electric  lighting,  gas  for  power  and  lighting,  janitor 
service,  oil,  waste,  supplies,  etc. 

a.  OPERATING  LABOR.  This  includes  the 
pay  and  expenses  of  the  superintendent  of  the  pump- 
ing plant,  foremen  and  all  laborers  employed  in  oper- 
ating the  pumping  station  equipment.  This  includes 
such  labor  as  that  of  chief  engineer  and  assistants, 
engineers,  oilers,  wipers,  and  all  other  employees 
whose  duties  concern  the  operation  of  the  pumping 
equipment.  Also  charge  to  this  account  the  salaries 
of  the  engineering  staff  assignable  to  the  pumping 
system.  Exclude  from  this  account  all  maintenance 
labor  which  is  elsewhere  provided  for. 

b.  FUEL.  This  includes  the  cost  of  fuel,  whether 
coal  or  oil,  used  under  the  boilers  for  the  generation 
of  steam,  and  the  cost  of  fuel  used  for  generating 
producer  gas.  Such  cost  should  include  all  specifically 
assignable  transportation  charges  incurred  in  obtain- 
ing the  delivery  of  the  fuel  on  the  premises  of  the 
purchaser. 


50 


c.  POWER  PURCHASED.  This  includes  the 
cost  of  all  steam,  electric  current,  or  water  power 
purchased  for  the  purpose  of  operating  the  pumping 
equipment. 

d.  MISCELLANEOUS  SUPPLIES  AND  EX- 
PENSES. This  includes  the  cost  of  all  supplies  and 
expenses  incurred  in  operating  the  pumping  plant  not 
provided  for  in  the  three  preceding  sub-accounts, 
such  as  water  used  in  boilers,  oil  and  waste,  etc. 

604.  DISTRIBUTION  EXPENSES. 

Charge  to  this  account  the  cost  of  inspecting, 
guarding  and  caring  for  the  transmission  mains  and 
accessories,  storage  reservoirs,  tanks  and  standpipes, 
the  cost  of  inspecting,  testing  and  caring  for  the  dis- 
tribution mains  and  accessories,  service  pipes,  meters, 
etc.,  and  all  other  expenses  in  connection  with  the 
transmission  and  distribution  of  water,  except  the 
cost  of  repairs. 

This  account  may,  if  desired  by  the  company  or 
required  by  the  commission,  be  further  classified 
under  the  following  headings  which  shall  be  the  titles 
of  the  special  accounts  set  up  hereunder : 

a.  Transmission  Mains  and  Accessories. 

b.  Storage  Reservoirs,  Tanks  and  Standpipes. 

c.  Distribution  Mains  and  Accessories. 

d.  Service  Pipes  and  Stops. 

e.  Meters,  Meter  Boxes  and  Vaults. 

f.  Fire  Hydrants  and  Cisterns. 

g.  Fountains,  Troughs  and  Other  Equipment. 

605.  WATER  PURCHASED. 

Charge  this  account  with  the  cost  of  water  pur- 
chased for  the  purpose  of  redistribution  and  sale. 
Accounts  are  to  be  opened  for  each  company  or  in- 
dividual from  whom  such  water  is  purchased,  the 
account  showing  the  name  of  the  selling  company  or 
individual,  the  rate  and  the  total  cost  of  such  water. 

II.  WATER  SUPPLY  EXPENSES  — MAINTE- 
NANCE. 

606.  REPAIRS  OF  WATE'R  COLLECTING  SYSTEM. 

Charge  to  this  account  the  cost  of  all  labor  em- 
ployed and  materials  consumed  in  making  repairs  to 
the  water  collecting  system.  This  includes  repairs 
to  lake  and  river  cribs,  springs  and  wells,  including 
the  removal  of  sand  and  corroded  material  and  re- 
pairs to  well  casings,  repairs  to  filter  galleries,  etc. ; 
repairs  to  impounding  dams  and  reservoirs,  collect- 
ing aqueducts,  intakes  and  supply  mains.  This  in- 


5i 


eludes  the  periodical  scraping  to  remove  organic 
growth  and  incrustation,  repairs  to  masonry  of  aque- 
ducts and  channels,  seeking  and  repairing  leaks,  re- 
pairing piping  and  replacing  worn  sections  and  fit- 
tings, calking,  protecting  exposed  parts  of  under- 
mined supply  mains,  changing  the  position  of  or 
replacing  such  mains  with  the  necessary  bracing  or 
digging ; repaving  and  repairs  to  valves,  screens  and 
wet  wells ; repairs  and  renewals  of  grating,  fish  screens 
and  repairs  to  submerged  and  exposed  cribs,  intake 
towers  and  other  structures,  sluice  gates,  etc. 

607.  REPAIRS  OF  PURIFICATION  SYSTEM. 

Charge  to  this  account  the  cost  of  all  labor  em- 
ployed and  materials  consumed  in  making  repairs  to 
the  purification  system.  This  includes  repairs  to 
settling  basins,  renewing  and  washing  sand,  and  re- 
pairs to  all  equipment  used  in  the  purification  of 
water  by  plain  sedimentation,  sedimentation  with 
coagulation,  treatment  for  softening  and  removal  of 
iron,  algae,  etc.,  purification  by  slow  and  rapid  sand 
filtration,  repairs  to  mechanical  filters,  etc. 

608.  REPAIRS  OF  PUMPING  SYSTEM. 

Charge  to  this  account  the  cost  of  all  labor  em- 
ployed and  material  consumed  in  making  repairs  to 
the  pumping  system.  This  includes  repairs  to  all 
buildings,  fixtures  and  apparatus  used  in  connection 
with  the  pumping  of  water,  such  as  furnaces,  boilers, 
engines,  pumps,  etc.,  and  all  appurtenant  equipment 
and  appliances.  This  account  may,  if  desired,  be 
divided  into  sub-accounts  corresponding  with  accounts 
Nos.  219-224. 

609.  REPAIRS  OF  DISTRIBUTION  SYSTEM. 

Charge  to  this  account  all  matters  provided  for 
under  the  following  heads,  which  may,  if  desired,  be 
carried  as  sub-accounts  hereunder : 

a.  Repairs  of  Transmission  Mains  and  Acces- 
sories. This  includes  the  cost  of  repairing,  overhaul- 
ing, changing  position  of  or  replacing  transmission 
mains  and  accessories.  It  also  covers  such  items  as 
seeking  and  repairing  leaks,  repairing  pipes  and  re- 
moving and  replacing  worn  sections  and  fittings,  calk- 
ing, protecting  exposed  parts  of  undermined  mains, 
digging  and  bracing  in  connection  with  such  work, 
repaving  and  repairing  manholes,  etc.,  together  with 
all  materials  and  supplies  consumed  in  thawing  pipes 
and  scraping  to  remove  incrustations. 


b.  Repairs  of  Storage  Reservoirs,  Tanks  and 
Standpipes.  This  includes  repairs  to  masonry  and 
linings  due  to  settlement  of  underlying  material,  frost 
action,  or  from  other  causes ; calking  and  repairing 
with  cement  grouting,  asphalt  or  other  waterproof 
material ; painting  and  calking  standpipes  and  tanks, 
replacing  parts  on  account  of  decay  or  excessive 
corrosion  or  electrolysis,  and  replacement  of  hoops, 
repairs  to  valves,  etc. 

c.  Repairs  of  Distribution  Mains  and  Acces- 
sories. This  includes  the  cost  of  repairing,  overhaul- 
ing, changing  position  of  or  replacing  distribution 
mains  and  accessories.  It  also  covers  such  items  as 
seeking  and  repairing  leaks,  repairing  pipes  or  re- 
moving and  replacing  worn  sections  and  fittings,  calk- 
ing, protecting  exposed  parts  of  undermined  mains, 
digging  and  bracing  in  connection  with  such  work, 
repaving,  repairing  manholes,  and  the  cost  of  steam, 
electricity  and  other  supplies  used  and  expenses  in- 
curred in  thawing  such  mains  and  removing  incrusta- 
tions. 

d.  Repairs  of  Service  Pipes  and  Stops.  This 
includes  the  cost  of  repairing,  overhauling  and  chang- 
ing position  of  water  service  connections,  including 
such  expenses  as  seeking  and  repairing  leaks,  clean- 
ing and  scraping  out  service  pipes ; repairing  and  re- 
newing service  pipe  connections  to  meters,  including 
stop  cocks,  service  boxes  and  the  cost  of  repairing 
the  same.  Also  include  hereunder  the  cost  of  chang- 
ing and  extending  old  service  pipes  to  put  meter  in 
better  location,  and  the  expense  for  materials  and 
supplies  incurred  in  thawing  services. 

e.  Repairs  of  Meters,  Meter  Boxes  and 
Vaults.  This  includes  readjusting,  painting,  re- 
placing worn  gears,  wearing  parts  and  dials,  testing 
and  repairing  old  meters,  repairing  and  replacing  con- 
nections, meter  fittings,  etc.,  meter  unions  and  cocks 
and  changing  meters  for  routine  tests,  etc. 

f.  Repairs  of  Fire  Hydrants  and  Cisterns. 
This  includes  repairs  and  renewals  of  parts,  including 
digging  and  filling  in  connections  with  such  repairs, 
painting  hydrants,  replacing  worn  fittings,  protecting 
exposed  parts  of  undermined  hydrants  and  connec- 
tions, and  changing  location  of  hydrants ; repairs  of 
masonry  and  lining  of  fire  cisterns  due  to  settlement 
of  underlying  material,  frost  action  or  from  other 
causes,  calking  and  repairing  with  cement  grouting, 
asphalt  or  other  waterproof  material,  replacing  worn 
parts  due  to  decay  or  other  causes  and  repairs  and 
renewals  of  connecting  piping  and  fittings. 


53 


6io. 


6n. 


g.  Repairs  of  Fountains,  Troughs  and  Other 
Equipment.  This  includes  the  cost  of  repairs  and 
renewals  of  parts,  painting,  repairing  foundations  and 
settings,  connections,  etc. ; overhauling  and  changing 
position  of  fountains,  troughs  and  other  equipment  of 
the  distribution  system  not  above  provided  for. 

GENERAL  REPAIRS. 

Charge  to  this  account  the  cost  of  all  labor  em- 
ployed and  materials  consumed  in  making  repairs  to 
general  structures  and  general  equipment,  such  as 
general  offices,  general  storehouses,  general  stable 
buildings,  garage,  shops,  etc.,  and  all  equipment  con- 
nected therewith,  for  details  of  which  see  account 
No.  233. 

DEPRECIATION. 

This  account  shall  be  charged  periodically  an  amount 
— estimated  or  determined  by  some  method  pre- 
scribed by  the  officials  of  the  company,  which  will  be 
sufficient  to  cover  the  cost  of  future  replacements  of 
tangible  property,  made  necessary  on  account  of 
gradual  wear  and  tear  and  obsolescense  and  inade- 
quacy as  have  accrued  during  the  period  of  such 
property,  any  portion  of  the  intangible  capital  as  may 
have  expired  during  the  period,  and  the  amount  esti- 
mated to  be  necessary  to  provide  a reserve  to  cover 
the  cost  of  property  destroyed  by  extraordinary  casual- 
ties. Amounts  charged  to  this  account  shall  be  cred- 
ited to  the  account  No.  180,  “ Depreciation  Reserved 

Note.  — When  any  property  is  retired  from  service,  the 
original  money  cost  thereof  — estimated  if  not  known  — 
less  salvage,  should  be  charged  to  the  reserve  account  No. 
180,  “ Depreciation  Reserve.”  The  commission  will  require 
all  companies  when  requested  to  report  the  basis  on  which 
such  depreciation  charges  are  made. 

Note.  — The  losses  of  a corporation  or  municipality 
operating  a water  supply  system  or  other  public  service 
utility  enterprise  are  progressively  increasing  with  the 
passage  of  years  for  each  structure,  fixture,  or  appliance 
constituting  a part  of  its  non-landed,  and  of  some  classes 
its  landed  permanent  properties  by  reason  of  depreciation. 

Depreciation  is  neither  actually  nor  relatively  the  same 
for  any  two  establishments,  even  for  the  same  industry. 
For  this  reason  it  is  impossible  to  frame  concise  general 
rules  for  making  allowances  for  depreciation  which  will 
not  in  their  application  be  attended  with  a large  margin  of 
possible  error.  To  use  such  rules  without  causing  errors, 
those  employing  them  must  have  for  each  individual  es- 
tablishment exact  data  based  upon  inspection,  showing  how 
far  and  in  what  respects  its  actual  depreciation  differs 
from  that  of  the  average  establishment  of  its  class.  In 
the  absence  of  such  exact  data  for  each  water  supply 
system,  however,  it  is  to  be  assumed  that  depreciation 


54 


takes  place  according  to  the  average  life  of  the  several 
parts  of  such  system  and  of  water  supply  plants  as  a whole. 

Until  further  study  and  experience  or  a series  of  inspec- 
tions and  appraisals  at  fixed  intervals  furnished  more  accu- 
rate data,  the  average  life  of  the  various  parts  of  the  fixed 
properties  of  a water  supply  enterprise  may  be  assumed  to 
be  approximately  as  follows : For  horses,  carriages, 

and  laboratory  apparatus  and  appliances,  io  years ; water 
meters,  service  pipes,  office  furniture,  and  general 
operating  equipment,  15  years ; boilers,  steam  pipes,  and 
filtration  equipment  20  years ; engines,  pumping  machinery, 
and  wood  pipes,  25  years;  masonry  of  filtration  plant, 
cribs,  iron  water  pipes,  intakes  and  connections,  fire 
hydrants,  standpipes,  and  buildings,  50  years ; reservoirs, 
tunnels,  and  aqueducts,  100  years ; and  for  the  water 
supply  system  as  a whole,  50  years.  All  these  approxima- 
tions are  subject  to  modifications  by  reason  of  any  un- 
usual conditions  which  may  shorten  or  prolong  the  life 
estimated  above. 

When  detailed  information  is  wanting  for  computing 
depreciation  as  outlined  herein  for  each  and  every  part  of 
the  system,  it  may  be  assumed  that  the  current  deprecia- 
tion for  the  system  as  a whole  is  approximately  2 per 
cent,  of  the  original  cost  of  the  system. 


III.  GENERAL  AND  MISCELLANEOUS 
EXPENSES. 

612.  ADMINISTRATION  EXPENSES. 

Charge  to  this  account  all  matters  provided  for 
under  the  following  heads : 

a.  Salaries  and  Expenses  of  General  Officers. 
This  account  includes  the  salaries,  traveling  and  in- 
cidental expenses  of  all  general  officers,  such  as  com- 
missioners, president,  vice-president,  treasurer,  secre- 
tary, comptroller,  general  auditor,  general  manager, 
assistant  general  manager,  chief  engineer,  general 
superintendent,  and  all  other  officers  whose  jurisdic- 
tion extends  to  the  entire  system  and  whose  services 
cannot  be  satisfactorily  allocated  to  the  several  de- 
partments. 

b.  Salaries  and  Expenses  of  General  Office 
Clerks.  This  account  includes  the  salaries  and  ex- 
penses of  all  clerks  and  assistants  connected  with  the 
general  office,  except  such  as  may  be  directly  engaged 
in  other  departments,  in  which  case  their  compensa- 
tion should  be  charged  to  such  department  directly. 

c.  General  Office  Supplies  and  Expenses. 
This  account  includes  the  cost  of  all  general  office 
supplies,  such  as  general  administrative  stationery, 
printing,  postage,  etc.,  wages  of  janitors,  porters  and 
messengers ; rent  of  rooms  in  office  buildings  and  all 
other  miscellaneous  expenses  of  general  offices. 


613.  ACCOUNTING  AND  COMMERCIAL  EX- 

PENSES. 

Charge  to  this  account  all  matters  provided  for 
under  the  following  heads : 

a.  Salaries  and  Expenses  of  Accounting  and 
Commercial  Employees.  This  account  includes  the 
salaries  and  expenses  of  meter  readers,  employees  en- 
gaged in  delivering  bills  for  water,  bookkeepers  and 
all  clerks  having  to  do  with  consumers’  accounts. 

b.  Accounting  and  Commercial  Office  Sup- 
plies and  Expenses.  This  account  includes  the  cost 
of  all  office  supplies  in  the  commercial  department, 
such  as  stationery,  printing,  postage,  etc.,  rent  of  office 
rooms,  and  all  other  incidental  expenses  of  the  com- 
mercial office. 

614.  BUSINESS  PROMOTION  EXPENSES. 

Charge  to  this  account  all  expenses  incurred  for 
the  purpose  of  promoting  and  extending  the  water 
service  business  of  the  accounting  person  or  company. 
This  includes  advertising,  canvassing  and  soliciting, 
demonstrations,  etc.,  and  all  expenses  connected  there- 
with. 

615.  LEGAL  EXPENSES. 

Charge  to  this  account  all  law  expenses  except  those 
incurred  in  the  defense  and  settlement  of  damage 
claims.  This  includes  salaries  and  expenses  of  all 
counsel,  solicitors  and  attorneys,  their  clerks  and  at- 
tendants, and  expenses  of  their  offices;  cost  of  law 
books,  printing  briefs,  legal  forms,  testimony,  and 
payments  of  special,  notarial,  and  witness  fees  not 
provided  for  elsewhere ; expenses  connected  with  fak- 
ing depositions,  and  all  law  and  court  expenses  not 
provided  for  elsewhere. 

Note.  — The  compensation  of  the  general  solicitor  or 
counsel,  or  other  attorneys  engaged  partly  in  the  defense 
or  settlement  of  damage  suits  and  partly  in  other  legal 
work,  should  be  properly  apportioned  between  this  account 
and  account  “Injuries  and  Damages”.  No.  616. 

616.  INJURIES  AND  DAMAGES. 

Charge  to  this  account  all  expense  on  account  of 
persons  killed  or  injured  and  property  damaged  (other 
than  that  owned  by  the  company  or  municipality)  in 
connection  with  the  operation  of  the  water  works. 
This  includes  judgments  for  damages  and  plaintiff’s 
court  costs ; salaries,  fees,  and  expenses  of  surgeons 
and  doctors ; nursing,  hospital  attendance,  medical 
and  surgical  supplies ; fees  and  expenses  of  coroners 


and  undertakers ; annual  contributions  to  hospitals ; 
transportation  of  injured  persons;  and  wages  and 
salaries  paid  to  employees  while  disabled.  Also  charge 
to  this  account  the  salaries  and  expenses  of  the  com- 
. pany’s  claim  agents,  adjusters,  and  their  assistants; 
the  compensation  of  the  general  solicitor  or  counsel 
and  other  attorneys  while  engaged  in  the  defense  and 
settlement  of  damage  suits,  and  all  other  legal  ex- 
penses incurred  on  account  of  injuries  and  damages. 

617.  INSURANCE. 

Charge  to  this  account  premiums  paid  to  insur- 
ance companies  for  fire,  casualty,  boiler,  fidelity,  bur- 
glar and  all  other  insurance ; also  amounts  set  aside  as 
an  insurance  reserve. 

618.  RELIEF  DEPARTMENT  AND  PENSIONS. 

Charge  to  this  account  all  salaries  and  expenses  in- 
curred in  connection  with  conducting  a relief  depart- 
ment; contributions  made  to  such  department;  pen- 
sions paid  to  retired  employees  and  all  expenses  in 
connection  therewith. 

619.  STORE,  GARAGE  AND  STABLE  EXPENSES. 

Charge  to  this  account  all  matters  provided  for 
under  the  following  sub-accounts : 

a.  Store  Expenses.  This  account  includes  all 
salaries  and  expenses  in  connection  with  store-rooms, 
including  cost  of  -sending  materials  and  supplies  from 
general  store-rooms  to  branch  store-rooms,  and  the 
collection  of  scrap  material. 

b.  Garage  and  Stable  Expenses.  This  account 
includes  the  cost  of  feed,  keep,  and  shoeing  of  horses, 
wages  of  stablemen  and  hostlers,  veterinary  expenses, 
and  all  other  expenses  of  stabling  horses ; also  the 
cost  of  repairing  harness  and  vehicles.  Also  include 
all  automobile  and  garage  expenses. 

620.  MISCELLANEOUS  ADJUSTMENTS  — BAL- 

ANCE. 

This  account  includes : 

a.  Inventory1  Adjustments  — Balance.  At 
least  once  a year  an  inventory  of  materials  and  sup- 
plies should  be  taken,  and  the  difference  (with  respect 
to  any  particular  class  of  materials  and  supplies)  be- 
tween the  ledger  and  inventory  balances  debited  or 
credited  to  this  account,  under  this  head  in  case  it 
cannot  be  assigned  to  a specific  account. 


57 


Note.  — Where  materials  and  supplies  have  been  used 
in  construction  as  well  as  in  operation,  a suitable  propor- 
tion of  the  shortages  or  overages  disclosed  by  the  inventory 
may  be  debited  or  credited  to  “ Miscellaneous  Construction 
Expenditures  ” No.  244. 

b.  Discounts  on  Materials  and  Supplies. — 
Cr.  Credit  to  this  account  under  this  head  all  dis- 
counts received  through  the  prompt  payment  of  bills 
for  materials  and  supplies  consumed  in  operation,  un- 
less such  discounts  are  applied  to  the  particular  bills. 

c.  Duplicate  Water  Charges  — Cr.  Credit  to 
this  account  under  this  head  all  charges  made  to  any 
accounts  in  water  operating  expenses  for  any  water 
or  other  product  of  water  operations  of  the  corpora- 
tion consumed  in  such  operations. 

d.  Water  Expenses  Transferred  — Cr.  Credit 
to  this  account  under  this  head  the  proportion  of  op- 
erating expenses,  including  depreciation  and  other 
amortization  as  well  as  repairs,  chargeable  to  other 
coordinate  departments  (such  as  electric  or  other  de- 
partments) within  the  same  corporation,  but  defrayed 

. in  the  first  instance  by  the  water  department. 

Note.  — This  account  should  not  be  credited  with  any 
allowance  in  the  nature  of  rent  or  return  upon  the  cost  or 
value  of  property. 

e.  Joint  Operating  Expenses  — Cr.  When  any 
plant  or  equipment  is  maintained  or  operated  by  the 
accounting  corporation  for  the  joint  benefit  of  itself 
and  others  under  an  arrangement  for  apportioning  (on 
the  basis  of  the  relative  amounts  of  benefit  to  the  sev- 
eral participants)  the  operating  expenses,  the  portion 
of  such  expenses  chargeable  to  others  under  the  ar- 
rangement should  be  credited  to  this  account  under  this 
head.  The  portion  so  credited  should  not  include  any 
allowance  for  profit  or  return  upon  the  value  of  such 
property. 

621.  MISCELLANEOUS  GENERAL  EXPENSES. 

Charge  to  this  account  all  miscellaneous  general  ex- 
penses not  elsewhere  provided  for  and  which  are  of 
such  unimportant  character  as  not  to  warrant  the 
opening  of  separate  accounts  therefor. 


58 

TENTATIVE  FORM  OF  REPORT 

The  form  of  report  which  will  be  prescribed  by  the 
commission  for  water  companies  will  contain  the  follow- 
ing schedules,  and  each  company  will  be  required  to  report 
all  items  thereof  applicable  to  the  operations  of  such  re- 
porting company: 


SCHEDULE  OF  BALANCE  SHEET  ACCOUNTS 
ASSET  SIDE 

FIXED  CAPITAL 

FIXED  CAPITAL  INSTALLED  PRIOR  TO  JAN- 
UARY i,  1922  

FIXED  CAPITAL  INSTALLED  SINCE  DECEMBER 

3L  1921  

COST  OF  FIXED  CAPITAL  PURCHASED  

CONSTRUCTION  WORK  IN  PROGRESS  

FIXED  CAPITAL  IN  OTHER  DEPARTMENTS  . . . 

CURRENT  ASSETS 

CASH  

NOTES  RECEIVABLE  

ACCOUNTS  RECEIVABLE  

INTEREST  AND  DIVIDENDS  RECEIVABLE  

MATERIALS  AND  SUPPLIES  

PREPAID  ACCOUNTS  

MISCELLANEOUS  CURRENT  ASSETS  

MISCELLANEOUS  ASSETS 

INVESTMENTS  IN  AFFILIATED  COMPANIES  .. 

MISCELLANEOUS  INVESTMENTS  

SINKING  FUNDS  

MISCELLANEOUS  SPECIAL  FUNDS  

SPECIAL  DEPOSITS  

SUSPENSE  ACCOUNTS 

UNAMORTIZED  DEBT  DISCOUNT  AND  EX- 
PENSE   

PROPERTY  ABANDONED  

JOBBING  ACCOUNTS  

CLEARING  OR  APPORTIONMENT  ACCOUNTS  .. 
MISCELLANEOUS  SUSPENSE  

ADJUSTMENT  ACCOUNTS 

DISCOUNT  ON  CAPITAL  STOCK  

REACQUIRED  SECURITIES  

TREASURY  SECURITIES  

PROFIT  AND  LOSS  DEFICIT  


59 


LIABILITY  SIDE 

CAPITAL  STOCK  

PREMIUM  ON  CAPITAL  STOCK  

LONG  TERM  DEBT  

RECEIVERS’  CERTIFICATES  

CURRENT  LIABILITIES 

NOTES  PAYABLE  

ACCOUNTS  PAYABLE  

CONSUMERS’  DEPOSITS  

MATURED  INTEREST  UNPAID  

DIVIDENDS  DECLARED  

MATURED  LONG  TERM  DEBT  UNPAID  

MISCELLANEOUS  CURRENT  LIABILITIES  

ACCRUED  LIABILITIES 

TAXES  ACCRUED  

INTEREST  ACCRUED  

MISCELLANEOUS  ACCRUED  LIABILITIES  

ADVANCES  FROM  AFFILIATED  COMPANIES  . . . 

RESERVES 

DEPRECIATION  RESERVE  

CASUALTIES  AND  INSURANCE  RESERVE  

UNAMORTIZED  PREMIUM  ON  DEBT  

SINKING  FUND  RESERVE  

CONTRIBUTIONS  FOR  EXTENSIONS  

CONTINGENCY  RESERVE  

MISCELLANEOUS  RESERVES  

MISCELLANEOUS  UNADJUSTED  CREDITS  

PROFIT  AND  LOSS  SURPLUS  


6o 


SCHEDULE  OF  INCOME  ACCOUNTS 


OPERATING  REVENUES  

OPERATING  EXPENSES  

NET  REVENUE  FROM  WATER  OPERATIONS 

REVENUE  FROM  OTHER  OPERATIONS  

EXPENSES  OF  OTHER  OPERATIONS  

NET  REVENUE  FROM  OTHER  OPERATIONS 

TOTAL  NET  OPERATING  REVENUES  

UNCOLLECTIBLE  OPERATING  REVENUES  

TAXES  ASSIGNABLE  TO  OPERATIONS : 

Federal  Taxes  $ 

State  Taxes  $ 

Municipal  Taxes  $ 

nr otcii  t cixcs 

DEDUCTIONS  FROM  NET  OPERATING  REVENUE 

OPERATING  INCOME  

NON-OPERATING  INCOME:  

PROFIT  ON  MERCHANDISE  SALES  

PROFIT  ON  PIPING  AND  CONNECTIONS  

RENTS  FROM  LAND,  BUILDINGS  OR  APPARA- 
TUS   

INTEREST  AND  DIVIDENDS  

MISCELLANEOUS  NON-OPERATING  INCOME  .. 

TOTAL  NON-OPERATING  INCOME  

GROSS  INCOME  

DEDUCTIONS  FROM  GROSS  INCOME:  

INTEREST  ON  LONG  TERM  DEBT  

MISCELLANEOUS  INTEREST  DEDUCTIONS  .... 
RENT  FOR  LEASE  OF  OTHER  WATER  PLANT 

AND  EQUIPMENT  

TAXES  ASSIGNABLE  TO  NON-OPERATIONS  ... 

SINKING  FUND  APPROPRIATIONS  

AMORTIZATION  OF  PREMIUM  ON  DEBT  — 

CREDIT  

AMORTIZATION  OF  DEBT  DISCOUNT  AND  EX- 
PENSE 

MISCELLANEOUS  ’ DEDUCT  IONS  ' FROM  ' GROSS 

INCOME  

TOTAL  DEDUCTIONS  FROM  GROSS  INCOME 

NET  INCOME  

DISPOSITION  OF  NET  INCOME:  

DIVIDEND  APPROPRIATIONS  OF  INCOME  

ON  COMMON  STOCK  

% on  $ payable  

% on  $ nayable  

ON  PREFERRED  STOCK  

% on  $ payable  

% on  $ payable  

MISCELLANEOUS  APPROPRIATIONS  OF  NET 

INCOME  

TAXES  ON  NET  INCOME 

TOTAL  APPROPRIATIONS  OF  INCOME  

AMOUNT  TRANSFERRED  TO  PROFIT  AND  LOSS 
ACCOUNT  


SCHEDULE  OF  PROFIT  AND  LOSS  ACCOUNTS 

PROFIT  AND  LOSS  ACCOUNT 
DEBIT 

BALANCE  AT  BEGINNING  OF  YEAR  

BALANCE  TRANSFERRED  FROM  INCOME  AC- 
COUNT   

DIVIDEND  APPROPRIATIONS  OF  SURPLUS  .... 
MISCELLANEOUS  DEBITS  

CREDIT 

BALANCE  AT  BEGINNING  OF  YEAR  

BALANCE  TRANSFERRED  FROM  INCOME  AC- 
COUNT   

APPROPRIATIONS  FROM  MUNICIPAL  FUNDS 

(FOR  MUNICIPAL  PLANTS  ONLY)  

MISCELLANEOUS  CREDITS  


SCHEDULE  OF  OPERATING  REVENUE  ACCOUNTS 

EARNINGS  FROM  COMMERCIAL  SALES  

a.  Commercial  Earnings  — Flat  Rate  

b.  Commercial  Earnings  — Metered  

EARNINGS  FROM  INDUSTRIAL  SALES  

a.  Earnings  from  Industrial  Sales  — Flat 

Rate  

b.  Earnings  from  Industrial  Sales  — Metered 
EARNINGS  FROM  SALES  TO  OTHER  WATER 

COMPANIES  

EARNINGS  FROM  MUNICIPAL  HYDRANT 

RENTALS  

EARNINGS  FROM  PRIVATE  FIRE  PROTECTION 
EARNINGS  FROM  SALES  FOR  STREET  SPRIN- 
KLING   

EARNINGS  FROM  SALES  TO  MUNICIPAL  DE- 
PARTMENTS   

MISCELLANEOUS  EARNINGS  FROM  OPERATION 


6 2 


SCHEDULE  OF  OPERATING  EXPENSE  ACCOUNTS 

I.  WATER  SUPPLY  EXPENSES  — OPERATIONS. 

COLLECTING  SYSTEM  EXPENSES  

a.  Reservations  and  Drainage  Area  

b.  Impounding  Dams  and  Reservoirs  

c.  Lake  and  River  Cribs  

d.  Springs  and  Wells  

e.  Infiltration  Galleries  and  Tunnels  

f.  Collecting  Conduits  and  Reservoirs  

g.  Gravity  Intakes  and  Suction  Mains  

h.  Aqueducts  and  Supply  Mains  

PURIFICATION  SYSTEM  EXPENSES  

a.  Sedimentation  and  Coagulation  

b.  Softening  and  Iron  Removal  

c.  Filtration  

d.  Chemical  Treatment  

e.  Clear  Water  Basins  

PUMPING  SYSTEM  EXPENSES  

a.  Operating  Labor  

b.  Fuel  

c.  Power  Purchased  

d.  Miscellaneous  Supplies  and  Expenses  .... 

DISTRIBUTION  EXPENSES  

a.  Transmission  Mains  and  Accessories  

b.  Storage  Reservoirs,  Tanks  and  Standpipes 

c.  Distribution  Mains  and  Accessories  

d.  Service  Pipes  and  Stops  

e.  Meters,  Meter  Boxes  and  Vaults  

f.  Fire  Hydrants  and  Cisterns  

g.  Fountains . Troughs  and  Other  Equipment 

WATER  PURCHASED  

II.  WATER  SUPPLY  EXPENSES  — MAINTENANCE. 

REPAIRS  OF  WATER  COLLECTING  SYSTEM  ... 

REPAIRS  OF  PURIFICATION  SYSTEM  

REPAIRS  OF  PUMPING  SYSTEM  

REPAIRS  OF  DISTRIBUTION  SYSTEM  

a.  Repairs  of  Transmission  Mains  and  Ac- 

cessories   

b.  Repairs  of  Storage  Reservoirs,  Tanks  and 

Standpipes  

c.  Repairs  of  Distribution  Mains  and  Acces- 

sories   

d.  Repairs  of  Service  Pipes  and  Stops  

e.  Repairs  of  Meters,  Meter  Boxes  and  Vaults 

f.  Repairs  of  Fire  Hydrants  and  Cisterns  . . 

g.  Repairs  of  Fountains,  Troughs  and  Other 

Equipment  

GENERAL  REPAIRS  

DEPRECIATION  


III.  GENERAL  AND  MISCELLANEOUS  EXPENSES. 

ADMINISTRATION  EXPENSES  

a.  Salaries  and  Expenses  of  General  Officers 

b.  Salaries  and  Expenses  of  General  Office 

Clerks  

c.  General  Office  Supplies  and  Expenses  .... 
ACCOUNTING  AND  COMMERCIAL  EXPENSES  . . 

a.  Salaries  and  Expenses  of  Accounting  and 

Commercial  Employees  

b.  Accounting  and  Commercial  Office  Sup- 

plies and  Expenses  

BUSINESS  PROMOTION  EXPENSES  

LEGAL  EXPENSES  

INJURIES  AND  DAMAGES  

INSURANCE  

RELIEF  DEPARTMENT  AND  PENSIONS  

STORE,  GARAGE  AND  STABLE  EXPENSES  

a.  Store  Expenses  

b.  Garage  and  Stable  Expenses  

MISCELLANEOUS  ADJUSTMENT  BALANCE  

a.  Inventory  Adjustment  Balance  

b.  Discount  on  Material  and  Supplies  — Cr. 

c.  Duplicate  Water  Charges  — Cr 

d.  Water  Expenses  Transfer  — Cr 

e.  Joint  Operating  Expenses  — Cr 

MISCELLANEOUS  GENERAL  EXPENSES  


$ 


L 


1 


